Core Insights - The competition between Meituan and Taobao Flash Delivery in the food delivery sector has cooled down in Q4, with significant changes in rider subsidies and user incentives [1][6] - There has been a notable trend of riders switching platforms, particularly from Taobao Flash to Meituan, due to changes in subsidy structures and delivery conditions [1][5] Subsidy Changes - Both platforms have reduced subsidies for users and riders since mid-September, leading to a decrease in rider income and a reassessment of platform stability [1][6] - In July, Taobao Flash offered substantial incentives, such as a monthly bonus of approximately 5,000 yuan for completing 20-30 orders daily, attracting many riders from Meituan [2][5] - By late September, Taobao Flash began to cut rider subsidies, with reports of a maximum new rider subsidy of 8,000 yuan, while Meituan's maximum was around 4,500 yuan [5][7] Rider Dynamics - The average delivery price for Meituan is 9.5 yuan, compared to 8.5 yuan for Taobao Flash and 7 yuan for JD's delivery service, making Meituan more attractive for riders [2][8] - The retention rate of newly recruited riders has dropped significantly from 80% to 50% during peak competition periods, indicating challenges in maintaining workforce stability [5][6] - Meituan has seen an increase in experienced riders, with a reported 20-30 new riders added to their teams in key areas like Sanlitun, many of whom have transitioned from Taobao Flash and JD [7][8] Operational Strategies - Both companies are now focusing on winter subsidy programs, with Meituan starting its winter subsidy earlier than usual, while Taobao Flash has also initiated similar programs [7][8] - The overlap of active riders across platforms has increased significantly, indicating a trend where riders are comparing subsidies and switching platforms based on better offers [10] - The operational strategies for both platforms in terms of delivery times and user experience will be crucial in determining rider and customer loyalty moving forward [10]