Involuntion

China’s food delivery platforms are engaged in intense subsidy wars, offering deep discounts to consumers and boosting order volumes. However, restaurants are struggling to profit, with some even losing money due to platform fees, delivery costs, and merchant-funded discounts. While consumers benefit from lower prices initially, experts warn this “burning money for market share” strategy is unsustainable and could compromise food quality and safety. Platforms and industry associations are now urging for fair competition and a return to value creation.