Regulatory Intervention
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Siblings Founder Calls on Delivery Platforms to Return Pricing Power to Merchants, Using Multiple “Crazy” Remarks
China’s food delivery price war is harming restaurants, as reported by CNBC AI News. Xibei’s founder, Jia Guolong, reveals concerns about unauthorized discounts and eroded pricing power. He argues that platforms’ unsustainable tactics damage the restaurant ecosystem, generating waste and squeezing profits. Jia pleads for pricing autonomy amidst regulatory intervention from SAMR urging rational competition. Despite this, reports indicate promotions continue, leaving restaurants struggling for survival.
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China’s Food Delivery War Cools Down After Regulatory Scrutiny: Alibaba, Meituan & JD Face Warnings, Zero-Cost Deals Still Possible.
Despite regulatory warnings from SAMR to Ele.me, Meituan, and JD.com regarding fair competition, the online food delivery subsidy war continues in China. Taobao Flash Sales maintained its “Super Saturday” promotion, but with tempered subsidies. While “zero-yuan” takeout orders were still possible, discounts were less aggressive than previous weeks. Meituan also reduced its high-value coupons. JD.com offered milder subsidies. The long-term impact of regulation on market competition is yet to be determined.
