Meituan, Taobao Flash, and Ele.me Unite Against “Malicious Competition”

CNBC AI News, August 1st—In a potentially seismic shift, major players in China’s fiercely competitive on-demand delivery market, including Ele.me, Meituan, and Taobao Flash, have issued coordinated statements calling for an end to what they describe as “malicious competition.”

Meituan, in a post on its official Weibo account, acknowledged the scrutiny surrounding recent subsidy wars, stating the company “attaches great importance” to the issue. The statement further pledged a commitment to “standardizing promotional activities, preventing unfair competition, establishing a fair and orderly industry order, and promoting mutual benefit and win-win results.”

Meituan vowed to lead by example and actively encourage the industry to build a healthy ecosystem that fosters the sustainable development of the food service sector.

Notably, Meituan emphasized that any future subsidy programs would strictly adhere to relevant laws and regulations, ensuring merchants are not coerced into participation and maintaining their right to set prices independently.

In a parallel move, Ele.me and Taobao Flash released a joint statement entitled, “Continuously Improving Service, Promoting Healthy Competition, and Stimulating Consumption.” The statement outlines key priorities for the platforms moving forward.

The companies collectively pledged to focus on the following four key areas:

I. Strategically Planned Subsidies Based on Consumer and Merchant Needs:

The platforms emphasized respect for merchants’ right to be informed, choose their level of participation, and retain control over pricing. They also stated they have established dedicated mechanisms for investigation and governance, backed by a safety net for compensation.

II. Resolutely Rejecting Malicious Competition:

The companies committed to proactively preventing unfair competitive practices. The aim is to unlock the consumption potential of emerging markets and foster innovation across the entire industry.

The pledge includes adhering to market principles, safeguarding merchants’ actual earnings and profit margins, and avoiding unsustainable “0 yuan purchase” (free) promotions.

They also committed to improving the instant delivery service experience for consumers while working with merchants, industry associations, and other stakeholders to ensure a fair operating environment for brick-and-mortar businesses.

III. Continuous Improvement of Service Quality:

The platforms emphasized providing consumers with transparent and straightforward promotional information, with the displayed price being the final price, thereby protecting consumer rights. A commitment to green consumption was also highlighted, encouraging rational spending and minimizing waste.

IV. Collaborative Promotion of Ecosystem Win-Win:

The companies have established feedback mechanisms around core issues such as merchant participation, product quality, and delivery rider rights. These mechanisms include ongoing consultation meetings throughout the country.

This apparent shift in strategy follows a formal meeting on July 18, 2025, during which China’s State Administration for Market Regulation (SAMR) summoned representatives from Ele.me, Meituan, and JD.com. The SAMR reportedly demanded strict compliance with laws and regulations, including the *E-Commerce Law*, the *Anti-Unfair Competition Law*, and the *Food Safety Law*, ordering the platforms to cease aggressive price-based competition, fulfill their responsibilities, regulate promotional activities, and collectively build an ecosystem that benefits consumers, merchants, riders, and the platforms themselves.