虎嗅APP·2026-01-11 14:06Core Viewpoint - The article emphasizes the urgent need to address the "involution" in the food delivery industry, as highlighted by the central government's focus on expanding domestic demand, promoting innovation, and combating involution in the economy [5][6]. Group 1: Market Saturation and Competition - The food delivery market in China is nearing saturation, with online food delivery users reaching 592 million by the end of 2024, accounting for 53.4% of the total internet users [8][10]. - The competition in the food delivery sector has shifted to a zero-sum game, where growth is no longer driven by increased demand but rather by existing market share [8][11]. Group 2: Impact on Stakeholders - The ongoing price wars have not benefited any stakeholders in the food delivery ecosystem. Merchants have seen a rise in order volume but a decline in actual revenue, with a reported average decrease of 4% in daily revenue despite a 7% increase in total orders since July 2025 [12][15]. - Delivery riders are also facing increased workloads without corresponding income growth, leading to a significant drop in average monthly earnings [13][15]. Group 3: Regulatory Response - The government has initiated investigations into the chaotic competition in the food delivery market, indicating a serious approach to curbing involution and ensuring fair competition [6][20]. - Previous attempts to regulate the market through discussions with major platforms like Meituan and JD have had limited success, necessitating a more robust regulatory framework [16][18]. Group 4: Long-term Implications - The article argues that the current trajectory of excessive marketing expenditures over long-term capital investments could undermine the long-term value of Chinese internet companies [21][27]. - The call for a shift from price wars to differentiated services and technological innovation is seen as essential for sustainable growth in the industry [27][25]. Group 5: Conclusion - The initiation of market investigations is viewed as a critical step towards meaningful reform in the food delivery sector, signaling the end of unsustainable competition driven by short-term gains [22][27]. - The article concludes that the future of the food delivery industry will depend on platforms' ability to adapt their strategies towards building a healthier ecosystem and enhancing core competitiveness [27][28].