Subsidy War

Leading Chinese food delivery platforms, including Meituan, Ele.me, and JD.com, have signaled a potential end to subsidy wars by publicly committing to curb unfair competition and “zero-dollar” promotions. They pledged to regulate promotional activities, respect market dynamics, guarantee reasonable profits for merchants, and focus on healthy competition driven by quality and service. The platforms aim to build a sustainable ecosystem through technological empowerment and supply chain innovation instead of relying on aggressive subsidies.

China’s food delivery subsidy war is likely winding down. Reports indicate a decrease in the massive discounts that previously characterized the market. While coupons are still available, the period of heavily subsidized deliveries, sometimes offering meals for free, appears to be ending.

The trending “Free Bubble Tea is Gone” hashtag on Weibo signals a potential shift in China’s food delivery market. Intense subsidy wars between giants like Meituan and Ele.me led to rock-bottom prices, but the State Administration for Market Regulation (SAMR) has intervened, urging a more sustainable competitive approach. Experts question the long-term viability of aggressive discounts, suggesting that neither platforms nor merchants can indefinitely bear the financial burden of these “delivery wars,” which aim to dominate China’s local services market.

China’s on-demand delivery market is experiencing intense competition as Meituan, Fliggy (Alibaba), and JD.com engage in a subsidy war. This weekend saw a surge in promotional offers, benefiting consumers seeking immediate delivery services. The players are vying for market share by attracting users with heavily discounted prices and incentives. The long-term impact of this subsidy battle on the on-demand delivery landscape remains to be seen.