Siblings Founder Calls on Delivery Platforms to Return Pricing Power to Merchants, Using Multiple “Crazy” Remarks

CNBC AI News, July 20th— A price war is erupting among China’s food delivery giants, leaving restaurant owners caught in the crossfire, according to recent reports.

Jia Guolong, founder of renowned restaurant chain Xibei, expressed his concerns with palpable urgency. “Nearly 11,000 discounted orders flooded our stores without our knowledge,” he revealed, painting a picture of sudden and overwhelming disruption.

Amidst this irrational subsidy melee, Jia lamented the erosion of the restaurant ecosystem: “The restaurant ecosystem has been damaged, and merchants are powerless.”

Jia used multiple expressions, all conveying his profound dismay at the ongoing delivery battle.

He argues that this relentless, almost predatory, expansion is undermining the very foundation of the restaurant industry: stripping merchants of their pricing control, generating massive packaging waste, and squeezing the already thin profit margins of restaurants. It’s a race to the bottom, he suggests, fueled by unsustainable tactics.

“Give us back our pricing power,” Jia demanded. “The delivery platforms are doing promotions themselves, and as a result, we have no pricing power, no autonomy at all. We are completely held hostage by the platforms.”

He elaborates, “From the perspective of the long-term development of the restaurant ecosystem, delivery platforms are, to a certain extent, causing harm.”

Jia expressed his frustration, stating, “As business owners, we just want to survive. We need to pay the salaries of Xibei’s 20,000 employees and keep all the restaurants running normally, remaining profitable, at least not losing money. Building a brand is not easy. Right now, we can only focus on survival and watch them battle it out.”

On July 18th, the State Administration for Market Regulation (SAMR) convened another meeting with Ele.me, Meituan, and JD.com, urging the platforms to comply with relevant laws and regulations, further regulate promotional activities, and participate in competition rationally.

However, despite the regulatory intervention, multiple media outlets report that while the intensity of the promotions may have subsided slightly, the campaigns continue unabated.