CNBC Exclusive | Meituan Defends Market Leadership Amid JD.com’s $1.4B Food Delivery Onslaught
BEIJING, May 26 (CNBC) — Chinese food delivery giant Meituan reported robust first-quarter earnings on Monday, with revenue surging 18% year-over-year to 86.6 billion yuan ($11.9 billion), underscoring its dominance in the hypercompetitive on-demand services sector.
During the earnings call, CEO Wang Xing delivered a defiant response to JD.com’s aggressive entry into the food delivery arena: “We’ve weathered multiple competitive storms over the past decade. While we welcome market participants to grow the industry pie, Meituan will spare no expense to defend and extend our leadership.”
The executive framed the competition as validation of China’s $150 billion food delivery market potential, stating: “New entrants only confirm the sector’s seismic growth prospects. Our decade of operational expertise, merchant partnerships, and AI-powered logistics will ultimately prevail.”
The comments come as JD Retail ramps up its “100 Million Subsidy” program launched April 11, pledging to inject 10 billion yuan ($1.4 billion) over 12 months through direct discounts and daily coupons. The e-commerce giant now covers 126 cities with 300,000 partnered restaurants, including global chains like McDonald’s and Haidilao Hot Pot.
JD’s platform offers up to 20 yuan ($2.75) in daily subsidies for all users, while premium subscribers and students gain access to exclusive 25-yuan vouchers. Analysts suggest the subsidies could pressure industry margins but ultimately accelerate market consolidation.
Meituan’s earnings release revealed strategic countermeasures, including upgraded membership benefits and AI-driven recommendation systems to boost order frequency. The company maintains control of 65% market share, according to recent Bloomberg Intelligence data.
The escalating rivalry highlights China’s evolving consumer tech battleground, where giants are increasingly encroaching on each other’s core territories. Industry watchers note that JD’s logistics network and Meituan’s last-mile delivery army could spark a service quality arms race benefiting consumers.
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