Group 1: Core Insights - The article highlights the paradox of the subsidy war in China's food delivery market, where riders earn more at the expense of merchants' profits [4][6][12] - It emphasizes the dual nature of subsidies, acting as both a lifeline and a poison for businesses, leading to unsustainable practices [4][6] - The competition between platforms like Meituan and JD.com is characterized by aggressive price wars, resulting in significant profit compression for merchants [7][11] Group 2: Market Dynamics - The article contrasts the Chinese delivery model with the U.S. model, noting that U.S. platforms like DoorDash achieve profitability through technology and efficient cost management, while Chinese platforms rely heavily on subsidies [9][11] - It points out that the average commission rates for Chinese platforms exceed 22%, compared to a stable 15% for U.S. counterparts, indicating a less sustainable business model in China [9][11] - The report from Morgan Stanley suggests that the gross merchandise value (GMV) in China's instant retail market may be inflated by 30%, raising concerns about the market's health [9] Group 3: Challenges and Risks - The article discusses the operational challenges faced by delivery platforms, such as high loss rates due to strict supply chain demands, which are exacerbated by the subsidy model [6][12] - It mentions that the pressure to deliver quickly can lead to dangerous working conditions for riders, highlighting the human cost of the current business practices [6][12] - The article warns that without technological innovation, the current subsidy-driven model could collapse under its own weight, threatening the entire ecosystem [6][12] Group 4: Recommendations for Improvement - The article suggests that platforms should adopt supply chain upgrades and innovative practices, such as the "central kitchen" model used by DoorDash, to reduce waste [13] - It advocates for a reform in profit distribution, proposing a more equitable model that avoids zero-sum competition among platforms, merchants, and riders [14] - The article calls for government intervention to regulate subsidies and promote technological advancements, which could lead to a healthier market environment [15] Group 5: Future Outlook - The article concludes that the true victims of the subsidy war are small businesses, which are caught in the crossfire of capital-driven competition [16] - It emphasizes the need for platforms that can sustainably generate profits for small merchants to succeed in the long run [16] - The future of the industry lies in innovation and a more inclusive ecosystem, rather than continued price wars [16]

Core Viewpoint - The competition in the instant retail market is intensifying as major internet platforms like JD.com, Taobao, and Meituan ramp up their efforts, raising questions about the opportunities for third-party delivery platforms like SF Express and Flash Delivery [1][10]. Group 1: Market Dynamics - Instant retail is experiencing explosive growth, with JD.com's food delivery service achieving over 25 million daily orders within just four months and over 150,000 full-time couriers [3][4]. - Taobao's flash purchase service has surpassed 60 million daily orders, and Alibaba has merged Ele.me into its China e-commerce group to accelerate instant retail development [3][4]. - Meituan is expanding its instant retail offerings, planning to cover all first and second-tier cities and enhance its supply chain across 200 quality agricultural regions [3][4]. Group 2: Strategic Involvement of Major Players - High-level executives from major companies are directly involved in promoting their instant retail services, indicating the strategic importance of this sector [4][5]. - JD.com has begun recruiting full-time couriers for its delivery service and has introduced a "second delivery station" role to enhance management and service quality [7][8]. Group 3: Innovations in Delivery Services - JD Logistics has launched the "Second Delivery Warehouse" service, which integrates warehousing and delivery, allowing for average delivery times of 30 minutes in key areas [9]. - This service model helps merchants avoid the high costs associated with building their own warehouses, thus lowering entry barriers for instant retail [9]. Group 4: Opportunities for Third-Party Delivery Platforms - Despite the dominance of major internet platforms, third-party delivery companies like SF Express and Flash Delivery have the potential to thrive by focusing on customized delivery solutions for various sectors [10][11]. - SF Express has noted that the current "takeout war" is just the beginning, with future expansions expected into non-food categories such as general merchandise and pharmaceuticals [11]. - The company aims to leverage its unique advantages by providing comprehensive service solutions for mid-sized businesses, which may prefer to collaborate with third parties rather than be tied to major platforms [12].