Core Viewpoint - The three major food delivery platforms in China, Meituan, Ele.me, and JD, have collectively announced an end to "zero-yuan purchases" and other forms of vicious competition, signaling a shift towards healthy competition focused on brand value [1][3][5]. Industry Response - Following the announcement, the stock prices of Meituan, Alibaba, and JD rose sharply, with increases exceeding 3% [2]. - The capital market's positive reaction indicates a strong endorsement of the food delivery industry's transition away from price wars towards brand value competition [3][5]. Impact of Price Wars - The price wars have been detrimental to the industry, leading to a "lose-lose" situation where all parties suffer, including merchants, delivery personnel, and consumers [3][4]. - The unsustainable model of "subsidy-burning" has eroded the core capabilities of platforms, such as technology and service, while creating a distorted ecosystem where only large brands thrive [4]. Shift to Brand Value Competition - The collective shift by the three platforms marks the beginning of a new phase in the Chinese internet sector, moving from "capital-driven" competition to "co-constructed rules" [5][6]. - This transition emphasizes quality over quantity, with initiatives like Meituan's "Raccoon Canteen" and JD's "Seven Fresh Kitchen" focusing on improving food quality and customer experience [5][6]. Technological and Ecological Advancements - The industry is evolving from human-driven operations to technology-enabled efficiencies, with Meituan deploying smart helmets for delivery personnel and JD optimizing logistics to reduce delivery times [5][6]. - The platforms are also restructuring their ecosystems to promote mutual benefits, such as providing social security for delivery workers and ensuring fair pricing for merchants [6]. Conclusion - The end of vicious price wars is seen as a new starting point for brand value competition, reflecting a strategic upgrade from "traffic thinking" to "brand thinking" in the internet sector [7].

Core Viewpoint - The major food delivery platforms in China, including Meituan, Ele.me, and JD, have collectively announced an end to the "zero yuan purchase" and other forms of vicious competition, signaling a shift towards healthy competition focused on brand value [1][2]. Group 1: Market Reaction - Following the announcement, the stock prices of Meituan, Alibaba, and JD rose, with increases exceeding 3%, indicating market confidence in the cessation of price wars and a return to brand value competition [2]. - The intervention by the State Administration for Market Regulation on July 18, which called for an end to vicious price wars, has played a significant role in this shift [2]. Group 2: Industry Dynamics - The ongoing price wars have been characterized as a "no-win game," leading to a cycle of "subsidy-burning-monopoly-backlash" that has harmed the industry, including reduced merchant profits, compromised rider rights, and degraded consumer experience [3]. - The rise in daily food delivery orders from 100 million to 220 million has primarily benefited large chain brands, while small merchants have been pushed out due to their inability to compete with subsidies [3]. Group 3: Shift in Competition Strategy - The collective pivot of these platforms marks a new phase in the Chinese internet sector, transitioning from "capital-driven" competition to "rule co-construction" [4]. - The focus on brand value signifies a correction in business logic, reconstruction of industry ecology, and a redefinition of corporate competitiveness [4]. Group 4: Innovations and Improvements - The new competition landscape emphasizes quality over quantity, with initiatives like Meituan's "Raccoon Canteen" and JD's "Seven Fresh Kitchen" focusing on quality control and transparency in food preparation [4]. - Technological advancements are being prioritized, such as Meituan's smart helmets for riders and JD's logistics collaboration to enhance delivery efficiency [4]. Group 5: Ecosystem Reconstruction - The platforms are moving towards a win-win ecosystem, with commitments to not force merchants into subsidies and to protect their pricing autonomy, aligning with regulatory expectations for fair competition [5]. - This strategic shift reflects a broader awakening to long-termism in the industry, moving from "traffic thinking" to "brand thinking," where the focus is on creating value for consumers and empowering merchants [5][6].