Investment Rating - The report maintains a "Buy" rating on Alibaba, Meituan, and PDD, while highlighting JD as a potential multiple repair/re-rating story [14][15][18]. Core Insights - The competition intensity among eCommerce players, particularly Alibaba, JD, and Meituan, in food delivery and instant shopping has escalated, with an estimated aggregate investment of Rmb25 billion (approximately US$3 billion) in the June quarter alone [9]. - The report estimates a total addressable market (TAM) of Rmb2.4 trillion for food delivery and Rmb1.5 trillion for instant shopping by 2030, driven by increased platform subsidies and user acquisitions [4][40]. - The ultimate goal for these companies is to become the "everyday app" for transactions, facilitating cross-selling across various goods and services [12][56]. Summary by Sections Market Overview - The food delivery competitive landscape is rapidly evolving, with Meituan achieving 90 million daily orders and Alibaba's Taobao Instant Commerce reaching 60 million peak daily orders [34]. - The report anticipates a re-acceleration of on-demand eCommerce penetration in China, projecting a TAM of Rmb1.5 trillion by 2030 [35][42]. Financial Projections - The report outlines three scenarios for food delivery and instant shopping, with a base case projecting a 5.5:3.5:1 market share between Meituan, Alibaba, and JD [10][27]. - Estimated losses for Alibaba and JD in food delivery are projected at Rmb-41 billion and Rmb-26 billion, respectively, over the next 12 months [9]. Company-Specific Insights - JD is expected to disproportionately benefit if it stabilizes its food delivery scale, while PDD is positioned to have a more resilient profit setup due to its lack of direct involvement in the food delivery competition [10][18]. - Meituan's strategic pivot towards centralized kitchens aims to enhance food safety and reduce delivery costs, which could improve long-term unit economics [11][54]. User Engagement and Traffic - The report notes a significant increase in daily active users (DAU) for both JD and Taobao, with a combined increase of 50 million DAU to approximately 410 million [12][56]. - The consolidation of offerings into a single app is seen as a strategy to monetize increased engagement from high-frequency food delivery [57].