IT Home, November 28 — According to a report from Yicai, Meituan CEO Wang Xing reiterated during the company’s Q3 earnings call that Meituan firmly opposes price wars in the food-delivery market. He stated:
“Food-delivery price wars are a low-quality, low-price form of internal competition. We strongly oppose them. The past six months have clearly shown that price wars create no industry value and are unsustainable.”
Wang said Meituan remains confident in defending its position in the on-demand retail market and committed to creating long-term value. He added that Meituan’s food-delivery market share has been steadily recovering, especially in higher-priced orders:
- Over two-thirds of orders priced above RMB 15 come from Meituan
- More than 70% of orders above RMB 30 are on Meituan
IT Home notes that Meituan reported its first operating loss in its core local-commerce segment in three years:
- Total revenue: RMB 95.5 billion (+2% YoY)
- Adjusted net loss: RMB 16 billion
- Core local-commerce revenue: RMB 67.4 billion but a loss of RMB 14.1 billion
The loss was mainly driven by increased subsidies in the intensifying price war. Wang emphasized that Meituan will avoid pursuing growth through heavy subsidies and focus instead on long-term value creation.
