Core Viewpoint - The intense competition in the food delivery market has led to significant financial losses for major players like JD.com and Meituan, with adjusted net profits dropping by 89% and 50.8% respectively in Q2 [1] Group 1: Financial Performance - Meituan's adjusted net profit for Q2 was 1.49 billion yuan, a year-on-year decline of 89% [1] - JD.com's net profit attributable to shareholders was 6.2 billion yuan, down 50.8% year-on-year [1] - The fierce competition characterized by massive subsidies has resulted in profit declines amounting to tens of billions, with some estimates reaching over 100 billion yuan [1] Group 2: Market Dynamics - The food delivery market is experiencing irrational competition, with platforms engaging in aggressive subsidy strategies that do not yield long-term winners [1][2] - Despite regulatory pressures and commitments from platforms, the aggressive "zero yuan purchase" promotions are diminishing, but major players like Meituan, JD.com, and Alibaba continue to expand in the instant retail sector [1][2] Group 3: Impact on Stakeholders - The intense competition and subsidy strategies have disrupted the pricing system in the industry, negatively affecting merchants, consumers, and delivery personnel [2][3] - Merchants are forced into participating in subsidies, undermining their pricing autonomy and complicating their operational strategies between dine-in and delivery services [2] - The financial strain on platforms can be managed, but individual merchants and delivery personnel lack the same resilience, making it difficult for them to return to normal operations once subsidies are reduced [3] Group 4: Future Outlook - The food delivery battle is expected to continue, but there is a call for more rational and innovative approaches within the industry [4]