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China's food-delivery crackdown isn't just about subsidies. It's about what replaces them when cheap money and discounts disappear.
Alibaba expands AI use in local services ecosystem to enhance its position in China's food and dining market.
Meituan remains the dominant Chinese on-demand delivery platform despite a Q3 loss driven by intensified subsidy competition with JD.com and Alibaba. Meituan's fulfillment efficiency and integrated content-to-transaction ecosystem underpin its market leadership, with unmatched speed, reliability, and high AOV order dominance. Meituan's lower burn rate versus peers amid irrational competition and a 34.3% YTD share price decline present an attractive buying opportunity.
Meituan is upgraded to bullish as the subsidy war peaks and market share rebounds, signaling a clearer path to margin recovery. Q3 revenue softness was optical, driven by contra-revenue from incentives, while New Initiatives delivered 15.9% y/y growth and improved margins. Subsidy levels are trending lower post-summer, with user engagement and GTV market share recovering, indicating competitive intensity is waning.
Alibaba officially retired its 16-year-old food delivery brand Ele.me on Friday, fully integrating it into its instant-retail strategy.
Meituan (OTCPK:MPNGY) Q3 2025 Earnings Call November 28, 2025 6:00 AM EST Company Participants Scarlett Xu - VP, Head of Capital Markets & Joint Company Secretary Xing Wang - Co-Founder, Chairman & CEO Shaohui Chen - CFO & Senior VP Conference Call Participants Ronald Keung - Goldman Sachs Group, Inc., Research Division Gary Yu - Morgan Stanley, Research Division Kenneth Fong - UBS Investment Bank, Research Division Thomas Chong - Jefferies LLC, Research Division Ya Jiang - Citic Securities Co., Ltd., Research Division Presentation Operator Thank you for standing by, and welcome to the Meituan Third Quarter 2025 Earnings Conference Call.
The Chinese shopping-and-delivery platform has been aggressively offering discounts to attract customers, a move seen as necessary to defend its market share against Alibaba's Ele.me and JD.com.
In the most recent quarter, MPNGY's revenue surged by 11.7% y/y. Due to the price war, net income margin plunged to 0.4% from 13.8% in the same period last year. Macroeconomic indicators suggests that retail consumption will remain high and the Chinese government will continue to stimulate the economy, releasing close to CN¥ 1.2 trillion in the near future. China's regulators have recently stepped in to end the price war between food delivery companies. MPNGY's profitability margins should start improving from here on.
I downgrade Meituan to Hold due to severe near-term profit pressure from an intensified subsidy war. While topline growth and market leadership are intact, EBIT and margins have collapsed, with management warning of further losses ahead. Meituan's unit economics advantage positions it to outlast competitors, but the duration of the subsidy war remains highly uncertain.
Meituan (OTCPK:MPNGF) Q2 2025 Earnings Conference Call August 27, 2025 7:00 AM ET Company Participants Shaohui Chen - CFO & Senior VP Sijia Xu - VP, Head of Capital Markets & Joint Company Secretary Xing Wang - Co-Founder, Chairman & CEO Conference Call Participants Alicia Yap - Citigroup Inc., Research Division Charlene Liu - HSBC Global Investment Research Gary Yu - Morgan Stanley, Research Division Kenneth Fong - UBS Investment Bank, Research Division Ronald Keung - Goldman Sachs Group, Inc., Research Division Thomas Chong - Jefferies LLC, Research Division Ya Jiang - Citic Securities Co., Ltd., Research Division Operator Thank you for standing by, and welcome to the Meituan Second Quarter 2025 Earnings Conference Call.
The two Chinese internet giants have sued each other in South America's largest nation over unfair competition related to their food delivery businesses
China's leading food delivery group Meituan , on Wednesday reported a 11.6% rise in second-quarter revenue missing expectations as it faces increasing competition in the "instant retail" sector.
The merger of its Ele.me service with its core e-commerce business marks a new stage in the e-commerce giant's three-way "on-demand retail wars" with Meituan and JD.com
I reiterate my buy rating on Meituan, viewing the current share price weakness as an attractive entry point for long-term investors. Escalating competition in China's food delivery is expanding the market, validating Meituan's moat, and strengthening its user base despite near-term margin pressure. Emerging segments like Instashopping and in-store services are scaling rapidly, diversifying Meituan's business and deepening consumer trust beyond food delivery.
Keeta, the overseas brand of Chinese food delivery giant Meituan, is expanding its drone delivery service in Dubai as part of an ambitious overseas push. Vice President Yinian Mao speaks with Bloomberg's Stephen Engle.
Meituan's Keeta unit launches drone deliveries in Hong Kong, extending its existing routes on Mainland China. Meituan's vice president Yinian Mao talks to Emily Tan about the company's drone delivery dreams, and how they fit into its broader operations.
MoonFox Data's report reveals how China's instant retail sector is entering a new phase of fierce competition, with JD.com and Meituan at the forefront, leveraging food delivery as a critical driver of user growth and market expansion in 2025. MoonFox Data's report reveals how China's instant retail sector is entering a new phase of fierce competition, with JD.com and Meituan at the forefront, leveraging food delivery as a critical driver of user growth and market expansion in 2025.
Meituan delivered strong Q1 results, beating earnings expectations and maintaining robust margins despite intensifying competition from JD in food delivery. The current 12.6x forward PE is an attractive entry point, with most negative sentiment already priced in and 41% upside potential. Meituan's competitive moat, platform scale, and efficient order allocation should help it withstand JD's subsidy-driven push and regulatory changes.
Meituan (OTCPK:MPNGY) Q1 2025 Earnings Conference Call May 26, 2025 7:00 AM ET Company Participants Scarlett Xu - VP & Head-Capital Markets Xing Wang - Chairman & CEO Shaohui Chen - SVP & CFO Conference Call Participants Ronald Keung - Goldman Sachs Ya Jiang - CITIC Securities Kenneth Fong - UBS Gary Yu - Morgan Stanley Alicia Yap - Citigroup Thomas Chong - Jefferies Operator Thank you for standing by, and welcome to the Meituan First Quarter 2025 Earnings Conference Call. All participants are in a listen-only mode.
The Beijing-based shopping-and-delivery platform said that net profit was 10.06 billion yuan for the first three months of the year.