Core Viewpoint - The major food delivery platforms in China, including Meituan, Ele.me, and JD, have collectively announced an end to the "zero yuan purchase" and other forms of vicious competition, signaling a shift towards healthy competition focused on brand value [1][2]. Group 1: Market Reaction - Following the announcement, the stock prices of Meituan, Alibaba, and JD rose, with increases exceeding 3%, indicating market confidence in the cessation of price wars and a return to brand value competition [2]. - The intervention by the State Administration for Market Regulation on July 18, which called for an end to vicious price wars, has played a significant role in this shift [2]. Group 2: Industry Dynamics - The ongoing price wars have been characterized as a "no-win game," leading to a cycle of "subsidy-burning-monopoly-backlash" that has harmed the industry, including reduced merchant profits, compromised rider rights, and degraded consumer experience [3]. - The rise in daily food delivery orders from 100 million to 220 million has primarily benefited large chain brands, while small merchants have been pushed out due to their inability to compete with subsidies [3]. Group 3: Shift in Competition Strategy - The collective pivot of these platforms marks a new phase in the Chinese internet sector, transitioning from "capital-driven" competition to "rule co-construction" [4]. - The focus on brand value signifies a correction in business logic, reconstruction of industry ecology, and a redefinition of corporate competitiveness [4]. Group 4: Innovations and Improvements - The new competition landscape emphasizes quality over quantity, with initiatives like Meituan's "Raccoon Canteen" and JD's "Seven Fresh Kitchen" focusing on quality control and transparency in food preparation [4]. - Technological advancements are being prioritized, such as Meituan's smart helmets for riders and JD's logistics collaboration to enhance delivery efficiency [4]. Group 5: Ecosystem Reconstruction - The platforms are moving towards a win-win ecosystem, with commitments to not force merchants into subsidies and to protect their pricing autonomy, aligning with regulatory expectations for fair competition [5]. - This strategic shift reflects a broader awakening to long-termism in the industry, moving from "traffic thinking" to "brand thinking," where the focus is on creating value for consumers and empowering merchants [5][6].

Core Viewpoint - The major food delivery platforms in China, including Meituan, Ele.me, and JD.com, have collectively announced an end to "zero-yuan purchase" and other forms of vicious competition, signaling a shift towards healthy competition focused on brand value [1][3][5]. Group 1: Market Reaction - Following the announcement, the stock prices of Meituan, Alibaba, and JD.com rose significantly, with increases exceeding 3% [2]. - The capital market's positive response indicates a strong endorsement of the shift away from price wars towards brand value competition [3][5]. Group 2: Impact of Price Wars - The price wars have been detrimental to the industry, leading to a "three losses" scenario where no party benefits [3][4]. - The vicious cycle of subsidies and price cuts has harmed merchants' profits, riders' rights, and consumer experiences, resulting in a distorted ecosystem [4]. - The surge in daily food delivery orders from 100 million to 220 million has primarily benefited large chain brands, while small merchants have been pushed out [4]. Group 3: Transition to Brand Value Competition - The collective shift by the three platforms marks a new phase in the Chinese internet sector, moving from "capital-driven" to "rule co-construction" [5][6]. - Emphasizing brand value signifies a correction in business logic, reconstruction of industry ecology, and re-establishment of corporate competitiveness [5]. - The new competition will prioritize quality over scale, with initiatives like Meituan's "Raccoon Canteen" and JD.com's "Seven Fresh Kitchen" focusing on quality control and customer experience [5]. Group 4: Technological and Ecological Advancements - The evolution towards efficiency involves leveraging technology, such as Meituan's smart helmets and JD.com's logistics collaboration, to enhance delivery speed and service quality [5][6]. - The platforms are also restructuring their ecosystems to promote mutual benefits, including providing social security for riders and ensuring merchants' pricing autonomy [6]. - This strategic upgrade reflects a shift from "traffic thinking" to "brand thinking," focusing on long-term value creation and social contributions [6][7].