Core Viewpoint - The fierce competition in the food delivery sector among Meituan, Alibaba, and JD has shown signs of winding down as they face significant financial pressures and begin to reassess their strategies [4][12][21]. Group 1: What the Companies Gained - Alibaba's investment in instant retail has led to substantial growth, with daily order peaks reaching 120 million in Q2 and 300 million monthly active buyers [6][7]. - The collaboration between instant retail and Alibaba's ecosystem has resulted in a 20% increase in daily active users (DAU) for Taobao, enhancing commission and advertising revenues [7]. - Meituan has solidified its market position, with record high daily active users and increased transaction frequency, indicating strong consumer loyalty despite the competitive environment [8][9]. - JD has found a new narrative for its e-commerce business through its food delivery efforts, which have shown synergy with its core retail operations [9][11]. Group 2: What the Companies Paid - Alibaba's Q3 operating profit plummeted 85% to 5.4 billion yuan, with a net profit drop of 72% to 10.4 billion yuan, primarily due to high spending on food delivery subsidies [16][17]. - Meituan reported a revenue of 95.5 billion yuan in Q3, with a net loss of 16 billion yuan, marking a significant decline from a profit of 12.8 billion yuan in the previous year [17][18]. - JD's revenue grew 15% to 299.1 billion yuan in Q3, but its adjusted net profit fell by 74 million yuan, reflecting the costs associated with its food delivery operations [19][20]. Group 3: Market Dynamics and Future Outlook - The competitive landscape has stabilized, with Meituan holding a 50% market share in food delivery, while Alibaba and JD have 42% and 8% respectively [25][26]. - The diminishing returns from subsidy strategies have prompted companies to reconsider their growth narratives, as evidenced by a shift in Alibaba's investment strategy [27][28]. - Experts suggest that while the immediate competition may have cooled, the focus will shift towards non-food instant retail and enhancing in-store service capabilities as the next battleground [28][29].

Core Insights - Meituan reported a significant net loss in Q3 2025, marking the first operational loss in its core business in three years, with adjusted net loss reaching 16.01 billion RMB compared to a profit of 12.83 billion RMB in the same period last year [2][5][7] Financial Performance - Total revenue for Q3 2025 was 95.49 billion RMB, a year-on-year growth of only 2.0% [2][4] - The net profit margin fell to -16.75%, with a substantial decline from the previous year's profit [2] - The core local commerce segment generated revenue of 67.45 billion RMB, down 2.8% year-on-year, resulting in an operational loss of 14.07 billion RMB [4][5] Segment Analysis - Meituan's delivery service revenue decreased by 17.1% to 23.02 billion RMB, while commission revenue grew by only 1.1% to 26.38 billion RMB [5] - Online marketing services revenue increased by 5.7% to 14.19 billion RMB, and other services saw a significant growth of 84.9% to 3.86 billion RMB [5] Cost Structure - Sales costs surged by 23.7% to 70.31 billion RMB, accounting for 73.6% of total revenue, an increase of 12.9 percentage points year-on-year [5][6] - Sales and marketing expenses rose by 91% to 34.27 billion RMB, representing 35.9% of total revenue, up from 19.2% [5][6] Market Position - Despite the losses, Meituan maintained a leading market share in high-value orders, capturing over two-thirds of the market for orders above 15 RMB and over 70% for orders above 30 RMB [7] - Meituan's market share in instant transactions was 47.1%, with a reported loss of 20% market share compared to previous periods [7] User Metrics - The number of monthly transaction users for Meituan's food delivery service reached a historical high, with total transaction users exceeding 800 million in the past 12 months [7] New Business Developments - The new business segment reported a revenue increase of 15.9% to 28.04 billion RMB, although operating losses increased by 24.5% to 1.3 billion RMB [8] - Meituan's Keeta business is expanding globally, with operations in Hong Kong and Saudi Arabia showing steady growth and improved operational efficiency [8] Cash Reserves - As of September 30, 2025, Meituan held cash and cash equivalents of 99.2 billion RMB, along with short-term investments totaling 42.1 billion RMB, amounting to a total cash reserve of 141.3 billion RMB [8]

Group 1 - The core point of the article highlights the significant financial losses reported by the three major players in the food delivery industry, namely Meituan, Alibaba, and JD.com, due to intense competition and high marketing expenditures [2][3][4] - Meituan reported a record net loss of 16 billion yuan in Q3, marking its largest loss since its IPO, compared to a profit of 12.8 billion yuan in the same period last year [2] - Alibaba's net profit for the same quarter fell by 52% to 20.99 billion yuan, while JD.com saw a 55% decline in net profit to 5.3 billion yuan [2][3] Group 2 - The marketing expenses for Meituan surged by 90.9% to 34.3 billion yuan in Q3, primarily due to increased spending on promotions and user incentives in response to fierce competition [3] - JD.com's marketing expenses rose by 110.5% to 21.1 billion yuan, with a significant portion allocated to its new food delivery business [3] - Alibaba's sales and marketing expenses reached 66.5 billion yuan, up from 32.5 billion yuan year-on-year, indicating substantial investment in its e-commerce operations [3] Group 3 - The total expenditure on food delivery by the three companies in Q2 and Q3 is estimated to exceed 74.4 billion yuan, with Q3 alone accounting for 44.4 billion yuan, reflecting a 48% increase in spending [4] - Despite the high expenditures, the competitive landscape remains challenging, with companies like Alibaba indicating a potential reduction in spending in the upcoming quarters [4][5] - Meituan's CEO expressed that while losses may have peaked, the company will continue to invest to maintain its market leadership without engaging in price wars [2][4] Group 4 - The intense competition has led to a situation where merchants experience increased order volumes but decreased actual revenue, indicating a "growth without profit" scenario [7] - The average daily order volume for merchants increased by 7%, but their actual revenue declined by approximately 4%, highlighting the adverse effects of the subsidy wars [7] - The ongoing subsidy competition has raised concerns about market saturation and the sustainability of such aggressive pricing strategies in the long term [9]

Core Viewpoint - The CEO of Meituan, Wang Xing, reiterated the company's stance against the unsustainable price war in the food delivery industry, emphasizing that it does not create value for the sector and is a form of low-quality competition [2]. Group 1: Financial Performance - Meituan reported a revenue of 95.5 billion yuan for the third quarter, representing a year-on-year growth of 2% [3]. - The core local commerce segment generated a revenue of 67.4 billion yuan, but due to competition in the food delivery sector, the operating profit turned negative, resulting in a loss of 14.1 billion yuan [3]. Group 2: Market Strategy - The company plans to increase investments in rider rights protection and support for small and medium-sized merchants to promote long-term healthy development in the industry [2]. - Wang Xing indicated that losses in the instant retail business have peaked in the third quarter, but significant losses are expected to continue in the near term [2]. - Meituan aims to maintain its competitive edge without engaging in price wars, adjusting its investment strategy based on market competition dynamics [2]. Group 3: Market Position - Meituan's market share in food delivery orders is steadily recovering, with the company leading in the mid-to-high price order segment [2]. - In the market for orders over 15 yuan, Meituan holds more than two-thirds of the market share, and for orders over 30 yuan, it accounts for over 70% [2].

Core Viewpoint - The company firmly opposes the "involution" competition characterized by low-quality and low-price strategies in the food delivery market, asserting that such price wars do not create sustainable value for the industry [1] Group 1: Company Strategy - The company plans to increase investments in "rider rights protection" and "support for small and medium-sized merchants" to promote long-term healthy development in the industry [1] - The CEO emphasized the importance of focusing on providing quality service to consumers, merchants, and riders, while maintaining confidence in defending the market position in instant retail [1] Group 2: Market Position - The company has seen a steady recovery in its market share for food delivery orders, maintaining a leading position in the mid-to-high price order market [1] - The company holds over 66% of the market share for orders exceeding 15 yuan and over 70% for orders exceeding 30 yuan, indicating strong performance in higher-value transactions [1] - Core user retention remains high, with increasing user consumption frequency and loyalty, reinforcing the company's status as the preferred platform for millions of users daily [1]

Core Viewpoint - The CEO of Meituan, Wang Xing, emphasized the company's opposition to the low-quality, low-price competition in the food delivery market, referring to it as an "involution" and stating that it has not created value for the industry and is unsustainable [1] Group 1 - Meituan's market share in food delivery orders has been steadily recovering, with the company maintaining a leading position in the mid-to-high price order market [1] - Meituan holds over 66% of the market share for orders with a payment of more than 15 yuan and over 70% for orders exceeding 30 yuan [1]

Core Viewpoint - The CEO of Meituan, Wang Xing, emphasized that the recent price war in the food delivery sector is unsustainable and does not create value for the industry, reaffirming the company's stance against low-quality competition [1] Group 1: Market Position and Strategy - Meituan's market share in food delivery orders has been steadily recovering, with the company maintaining a leading position in the mid-to-high price order market [1] - Over two-thirds of Meituan's orders are priced above 15 yuan, and more than 70% of orders exceed 30 yuan, indicating a strong presence in higher-value transactions [1] Group 2: Long-term Value Creation - The company is confident in defending its market position in instant retail and aims to create genuine long-term value, distancing itself from the low-price competition [1]

Core Viewpoint - The company firmly opposes the "involution" competition characterized by low-quality and low-price strategies in the food delivery market, asserting that such price wars do not create sustainable value for the industry [1] Group 1: Company Strategy - The company plans to increase investments in "rider rights protection" and "support for small and medium-sized merchants" to promote long-term healthy development in the industry [1] - The CEO emphasized the importance of focusing on providing quality service to consumers, merchants, and riders, while maintaining confidence in defending the market position in instant retail [1] Group 2: Market Position - The company has reiterated its opposition to irrational competition in the food delivery sector, believing it to be temporary [1] - The company continues to lead in the mid-to-high price order market, holding over 66% market share in orders exceeding 15 yuan and over 70% in orders exceeding 30 yuan [1] - Core user retention remains high, with steady improvements in user consumption frequency and loyalty [1]

Group 1 - The core viewpoint is that Meituan's food delivery orders are steadily regaining market share, with the company maintaining a leading position in the mid-to-high price order market GTV [1] - Meituan holds over 66% market share in orders with a payment of more than 15 yuan, and over 70% in orders exceeding 30 yuan [1] Group 2 - During the third quarter earnings call, Meituan's CEO Wang Xing reiterated the company's stance against the low-quality, low-price competition of the food delivery price war, describing it as unsustainable [3] - The market results over the past six months have demonstrated that the price war has not created value for the industry [3] - Meituan expresses confidence in defending its market position in instant retail and aims to create genuine long-term value [3]