Core Viewpoint - The article discusses the intense competition in the food delivery and instant retail market, particularly focusing on Meituan's strategies and challenges amid aggressive subsidies from competitors like Taobao and JD.com [4][5][6]. Group 1: Market Dynamics - Since mid-June, Meituan's daily payment orders have remained above 90 million, but its market share in terms of order volume has dropped from over 70% to below 60% due to faster growth from competitors [4][6]. - Taobao Shanguo has launched a 500 billion subsidy, marking the largest subsidy war in the history of food delivery, while JD.com has also committed significant resources to compete [5][8]. - The total daily order peak in the competitive landscape has exceeded 180 million, with tea and coffee orders making up a significant portion of the growth [10][11]. Group 2: Financial Implications - Meituan is expected to increase its subsidies by at least 10 billion yuan compared to last year, with potential additional spending of 15 to 20 billion yuan if competition intensifies in the second half of the year [4][8]. - Meituan's core local business, which includes food delivery, is projected to generate an operating profit of 524 billion yuan in 2024, with food delivery contributing approximately 325 billion yuan, accounting for over 60% of the profit [10][11]. - The total subsidy expenditure for Meituan in food delivery could reach 40 to 50 billion yuan this year, reflecting the competitive pressures in the market [10][11]. Group 3: Competitive Landscape - Meituan's main competitors, JD.com and Alibaba, are not reliant on food delivery for profitability, which differentiates them from Meituan, where local services are a primary profit source [10][13]. - The competition has evolved into a battle for online retail growth, with Taobao Shanguo emerging as Meituan's primary rival [12][14]. - Meituan is closely monitoring potential threats from Douyin and Pinduoduo, which are also exploring opportunities in instant retail and food delivery [14][15]. Group 4: Strategic Responses - Meituan's leadership has indicated a commitment to win the competition at all costs, reflecting a strategic pivot towards aggressive market engagement [16][17]. - The company is adapting its subsidy strategies dynamically based on competitor actions, indicating a responsive approach to market changes [8][10]. - Meituan's management is focused on maintaining order volumes despite competitive pressures, with internal assessments suggesting that the battle may last one to two years [10][11].