Core Viewpoint - The current battle in instant retail, particularly in food delivery, is characterized by a significant increase in subsidies from major platforms, leading to record-high order volumes. However, the underlying reality suggests that the competition is not merely about subsidy scale but rather about the foundational infrastructure capabilities that determine the ultimate victor [3][6][15]. Group 1: Key Factors for Success - The decisive factors in the current food delivery war are fulfillment and supply capabilities, which have become the strongest leverage points [7]. - Recent order data shows that JD's food delivery surpassed 25 million orders last month, while Meituan's peak order volume increased from 90 million to 150 million within a short period, indicating a significant growth potential despite the high subsidy environment [8][9][10]. - Meituan's return on investment (ROI) from subsidies appears to be the highest among the three major platforms, suggesting that its operational efficiency is superior [10][11]. Group 2: Misconceptions in the Market - The misconception that food delivery is primarily a volume-driven business is challenged by the reality that fulfillment and supply capabilities are critical to success. The dynamics of local, non-standardized transactions in food delivery differ significantly from traditional retail [16][19]. - The historical pattern of subsidy wars in various sectors indicates that attracting users through subsidies often leads to low conversion rates and customer lifetime value (LTV), as these users are typically price-sensitive rather than genuinely interested in the service [27][28]. Group 3: The Dangers of Continuous Subsidy Wars - The ongoing subsidy wars are unsustainable and could lead to market distortions, undermining the health of the instant delivery ecosystem. The focus should shift from mere data competition to fostering a healthy development of the entire market [24][28][29]. - The two primary motivations for e-commerce platforms engaging in food delivery are to leverage high-frequency dining demand to drive low-frequency retail demand and to build a comprehensive instant delivery system. However, relying on strong subsidies is not a viable strategy for achieving these goals [25][26].

Core Viewpoint - The current battle in instant retail, particularly in food delivery, is characterized by a significant increase in subsidies and order volumes, but the real competition lies in the underlying infrastructure capabilities rather than just the scale of subsidies [2][4][24]. Group 1: Order Data and System Capabilities - Order data serves as a battle report, while system capabilities represent the true front line of competition [3]. - The latest order statistics show that JD's food delivery surpassed 25 million orders, while Taobao Flash Sale and Ele.me exceeded 80 million orders, and Meituan reached a peak of 150 million orders [7][8][12]. - Meituan's growth potential appears greater despite its larger base, as it has achieved significant order volume increases with lower subsidy levels compared to competitors [12][18]. Group 2: Key Differentiators - The primary differentiator among the three platforms is their fulfillment and supply capabilities, with Meituan leading in this area [11][12]. - JD's late entry has resulted in a longer construction period for its infrastructure, raising questions about its capital capacity [11]. - Taobao Flash Sale, while integrating resources from Ele.me, still faces limitations due to its smaller scale compared to Meituan [12]. Group 3: Misconceptions and Market Dynamics - The misconception that food delivery is a flow business is challenged by the reality that demand for food is constant and cannot be artificially created like retail products [17][24]. - The strategy of using subsidies to drive traffic and create social recognition is flawed in the context of food delivery, where supply and fulfillment must align with consumer demand [17][24]. - Historical patterns indicate that subsidy-driven customer acquisition often attracts price-sensitive users rather than genuine demand, leading to low conversion rates and customer lifetime value [23][24]. Group 4: Future Considerations - The ongoing subsidy wars are unsustainable and should not continue, as they distort market signals and can lead to supply imbalances and degraded user experiences [21][24]. - The focus should shift from mere order volume competition to enhancing the overall ecosystem of instant retail, emphasizing fulfillment capabilities and user experience [24][25].

Core Viewpoint - The CEO of Meituan's core local business segment, Wang Puzhong, expressed confidence in Meituan's ability to compete against Alibaba's aggressive 500 billion subsidy strategy, stating that Meituan can match Alibaba's efforts with significantly fewer resources [1][2]. Group 1: Competitive Landscape - Alibaba's 500 billion subsidy is seen as an irrational competition aimed at intimidating Meituan, with the expectation that Meituan cannot keep up financially [2]. - Meituan achieved a record order volume of 1.5 billion on a single day, but Wang Puzhong clarified that the actual expenditure was much lower than the 800 million speculated by Alibaba insiders [3]. - Wang Puzhong noted that Alibaba's cumulative losses from its food delivery service Ele.me exceed 150 billion, suggesting that Alibaba's new investment is akin to a gambler trying to recover losses [4]. Group 2: Market Dynamics - The decision for Alibaba to intensify its competition appears to have been influenced by the entry of JD.com into the food delivery market, which reportedly secured 25 million orders in just 75 days [6]. - Wang Puzhong emphasized that the number of orders does not equate to valuable Gross Transaction Value (GTV), highlighting that many orders consist of low-value items, such as bulk purchases of bottled water [6]. - The overall market for instant retail has seen a significant increase, with daily orders rising from 100 million at the beginning of the year to 250 million recently, although Wang Puzhong believes that most of this growth is speculative [7].

Core Viewpoint - The ongoing "delivery war" among major platforms like Meituan, Alibaba, and JD has led to a surge in order volumes, but this has not translated into significant profit growth for merchants, raising concerns about the sustainability of such aggressive subsidy strategies [1][12][15]. Group 1: Order Volume Surge - Meituan reported a daily order volume exceeding 150 million, while Alibaba's Taobao and Ele.me announced a record of over 80 million daily orders [3][4]. - Many merchants experienced a doubling of order volumes, with some stores reporting over a thousand orders in a single day, leading to chaotic scenes in stores [2][3]. - The influx of orders has resulted in operational challenges for merchants, with some unable to fulfill orders in a timely manner, leading to increased customer complaints and dissatisfaction [5][6]. Group 2: Rider Income Growth - Riders' daily order volume increased by 33%, and their income surged by 111%, with some riders earning over 400 yuan in additional subsidies during peak activity days [4][12]. - The number of active riders has also seen significant growth, with a 120% increase in crowd-sourced riders since the launch of Taobao's flash purchase service [4]. Group 3: Profitability Concerns - Despite the surge in order volumes, many merchants reported that their profit margins remained thin, with some experiencing a 10% increase in negative reviews due to delays in order fulfillment [5][6][7]. - Merchants are facing increased operational pressures, with staffing levels needing to double to manage the order influx, yet still struggling to meet demand [6][7]. Group 4: Industry Impact and Future Outlook - The aggressive subsidy strategies are seen as a threat to traditional dining establishments, as they divert customers from dine-in to delivery services, potentially harming the overall restaurant ecosystem [7][8]. - Experts suggest that the current subsidy-driven growth is unsustainable and may lead to a "three losses" scenario where platforms, merchants, and consumers all suffer in the long run [9][10]. - There are calls for platforms to reduce commission fees and for regulatory bodies to intervene to ensure fair competition and a balanced market environment [10][18].

Core Viewpoint - The ongoing battle in the food delivery market, driven by aggressive subsidies and price wars, is unsustainable and does not address the real needs of consumers or businesses [14][15][22]. Group 1: Market Dynamics - On July 5, a record of 250 million food delivery orders was placed in China, with Meituan and Ele.me leading the charge [2][3]. - The competition has escalated, with Meituan's daily orders reaching 150 million by July 12, while Ele.me and Taobao Shuangguo reported over 80 million orders on the same day [2][3]. - The battle was initially sparked by JD.com’s aggressive "100 billion subsidy" strategy, prompting Alibaba to respond with its own substantial subsidies [2][10]. Group 2: Consumer Behavior - Consumers are enjoying the benefits of the subsidy wars, sharing experiences of receiving significant discounts and promotions [4][8]. - However, the high volume of orders has led to operational challenges for businesses, with reports of overwhelmed staff and delayed deliveries [5][6]. - The perception of food delivery as a necessity is distorted, as many orders are driven by temporary discounts rather than genuine demand [8][10]. Group 3: Business Implications - The subsidy model creates inequities, favoring large chain brands over small businesses, leading some small vendors to withdraw from platforms [6][10]. - Delivery personnel are experiencing increased workloads and stress, with reports of long hours and high earnings during peak subsidy periods, but also concerns about job security once subsidies end [6][13]. - The competitive landscape is shifting from a focus on customer satisfaction and service quality to a detrimental price war, which could harm all stakeholders involved [10][11][19]. Group 4: Long-term Viability - The current price war is characterized as a "prisoner's dilemma," where all parties may end up worse off despite short-term gains [17][21]. - Experts argue that the focus should shift from price competition to innovation and quality improvement to create a sustainable market environment [22][23]. - The call for collaboration among platforms, merchants, and government entities is emphasized to foster a healthier market ecosystem [22].

Core Viewpoint - The article discusses the ongoing "burning money war" in the food delivery industry, particularly focusing on the implications of the "0 yuan purchase" strategy employed by major platforms like Alibaba and Meituan, which is leading to unsustainable business practices and consumer behavior changes [2][3][5][9]. Group 1: Industry Dynamics - Major platforms such as Alibaba, Meituan, and JD are heavily investing in subsidies, with cumulative expenditures nearing 100 billion yuan this year, comparable to national consumption subsidies [7]. - The "0 yuan purchase" strategy is a direct and aggressive growth tactic that boosts order volume and user acquisition in the short term, but it risks long-term customer loyalty and retention [9][10]. - The intense competition among platforms leads to a vicious cycle of increasing customer acquisition costs and declining profit margins for all involved [10]. Group 2: Impact on Consumers - Consumers are currently the biggest beneficiaries of the subsidy-driven price wars, enjoying significant discounts and promotions, which distorts their purchasing habits and reduces sensitivity to normal pricing [19]. - The prevalence of "0 yuan purchase" has created a culture of expectation for discounts, which could harm the overall pricing structure of the market in the long run [19]. Group 3: Challenges for Merchants - Merchants face significant operational challenges due to the influx of orders driven by "0 yuan purchase," leading to overwhelmed staff and increased pressure without corresponding financial benefits [14][15]. - Participation in subsidy programs often requires merchants to absorb costs, as they must align with the platforms' pricing strategies, which can lead to a dependency on discounts and reduced profit margins [15][18]. - The long-term reliance on low prices can negatively affect brand positioning and overall business sustainability for merchants [17][18].

Core Viewpoint - The article discusses the ongoing subsidy war in the food delivery industry, highlighting the preparations made by merchants and delivery personnel to handle increased order volumes effectively during promotional events [2][5][6]. Group 1: Merchant Preparations - Merchants, such as those from the brand Mixue Ice City, have been preparing for the subsidy events by stocking up on materials and communicating with delivery platforms like Meituan to ensure readiness for the influx of orders [3][4]. - Some stores reported significant increases in sales, with one store achieving over 10,000 yuan in revenue on July 12, compared to a typical daily revenue of 7,000 to 8,000 yuan [2][4]. Group 2: Delivery Personnel Adjustments - Delivery personnel have also adjusted their operations, with teams ensuring full attendance during peak hours and extending delivery times to accommodate the expected surge in orders [4][5]. - A delivery rider noted that the order volume for Mixue Ice City increased from a typical 200-300 orders per day to over 800 orders on July 12, indicating a significant impact from the promotional activities [4]. Group 3: Competitive Landscape - The competition among food delivery platforms is intensifying, with Meituan and other platforms offering substantial subsidies to attract customers, leading to a surge in user engagement and order volumes [5][6]. - Analysts predict that the current competitive dynamics will persist at least until the Double Eleven shopping festival, with a shift from a "capital war" to an "efficiency war" as companies seek to balance user demands, rider rights, and merchant profitability [6].

Core Viewpoint - The article discusses the ongoing subsidy war among food delivery platforms, highlighting the varying experiences of different stores and the preparations made by both merchants and delivery riders to handle increased order volumes during promotional events [1][2][4]. Group 1: Merchant Experiences - Some stores, like a specific location of Mixue Ice City, reported significant sales increases, with daily revenue surpassing 10,000 yuan compared to the usual 7,000 to 8,000 yuan, and expectations of reaching 20,000 yuan for the day [1]. - Not all stores experienced the same surge; another Mixue Ice City employee noted that their store was only slightly busier than usual, indicating variability in customer response to promotions [2]. - Merchants prepared in advance for the subsidy events, ensuring adequate stock and staffing to meet potential demand, reflecting lessons learned from previous chaotic weekends [2][3]. Group 2: Delivery Rider Insights - Delivery riders reported increased order volumes due to promotional activities, with one team expecting to handle over 3,600 orders, a significant rise from typical numbers [3]. - The efficiency of order pickups improved compared to previous weekends, with riders able to collect orders with minimal waiting time, indicating better coordination between stores and delivery personnel [3]. Group 3: Competitive Landscape - The competition among food delivery platforms is intensifying, with Meituan and Taobao actively engaging in promotional campaigns, including significant discounts and free items to attract customers [4]. - JD.com is shifting its subsidy strategy to focus on specific food categories, such as main meals and seafood, rather than just beverages, indicating a more targeted approach to competition [4]. Group 4: Industry Outlook - Analysts predict that the current competitive dynamics will persist at least until the Double Eleven shopping festival, with short-term operational pressures on merchants due to increased order volumes and associated costs [5]. - The long-term outlook suggests a trend towards industry consolidation, favoring companies with strong supply chain efficiency and brand power, as the competition evolves from a "capital war" to an "efficiency war" [5].

Group 1 - The article discusses the upcoming subsidy battle in the beverage industry, particularly focusing on the preparations made by businesses ahead of the weekend sales event [1] - Different stores within the same brand, such as Mixue Ice City, report varying levels of order volume, indicating a lack of uniformity in customer demand [1] - Stores are proactively preparing for the expected surge in orders by stocking up on materials and ensuring adequate staffing for the weekend [1] Group 2 - UBS predicts that the current competitive landscape will persist at least until this year's Double Eleven shopping festival [2] - The impact of the subsidy battle on businesses shows short-term operational pressures, especially for small and medium-sized enterprises, which may face order surges but also bear subsidy costs and increased raw material consumption [2] - The industry is expected to undergo consolidation, with market concentration favoring companies with high supply chain efficiency and strong brand power, as regulatory interventions push platforms to optimize subsidy structures [2]

Group 1 - The article discusses the preparation and response of merchants and delivery riders ahead of a new round of subsidy wars in the food delivery industry, highlighting a more organized approach compared to the previous weekend's chaos [1][6] - On July 12, a store employee from Mixue Ice City reported that their sales exceeded 10,000 yuan during peak hours, significantly higher than the usual 7,000 to 8,000 yuan, indicating a successful sales day driven by promotional activities [2][5] - Different stores under the same brand experienced varying levels of order volume, with some reporting a significant increase in orders while others saw only a slight uptick, suggesting a disparity in promotional effectiveness [4][5] Group 2 - The competitive landscape in the food delivery sector is intensifying, with Meituan and other platforms engaging in aggressive subsidy strategies, including offering free drinks and substantial discount coupons to attract customers [6][7] - Analysts predict that the current competitive dynamics will persist at least until the Double Eleven shopping festival, with short-term operational pressures on merchants due to increased order volumes and the associated costs of subsidies [7] - The long-term outlook suggests a shift towards market consolidation, favoring companies with strong supply chain efficiency and brand power, as regulatory interventions push platforms to optimize subsidy structures and reduce merchant burdens [7]