On October 16, during the 8th China Catering Industry Conference, Xue Bing, General Manager of Meituan Waimai, shared an in-depth view on the current “subsidy war” reshaping China’s food delivery market.
He revealed that the overall order volume and average spending per order are expected to grow steadily through 2025, despite short-term fluctuations caused by aggressive price cuts.
“Since this spring, some platforms have used heavy subsidies to create ultra-low prices,” Xue explained. “While this led to a short-term surge in order volume, it also caused a sharp decline in average ticket value — a temporary boom built on unsustainable discounts.”
According to Xue, 45% of the incremental orders during the subsidy period came from beverages, and 75% of all new orders were priced below ¥15, leaving only 25% above that threshold.
“Subsidies are like a gust of wind — they bring not healthy growth, but a massive bubble,” he warned. “The food delivery industry must move beyond price wars and pursue sustainable, high-quality growth.”
Wang Puzhong, CEO of Meituan’s Core Local Commerce Group, added that the consumer demand for “super value for money” is reshaping the restaurant industry itself.
“True value doesn’t come from undercutting competitors,” Wang said. “It comes from businesses improving operations, optimizing costs, and creating products that genuinely meet customer expectations.”
Industry experts view these statements as a sign that leading platforms like Meituan are shifting from blind competition toward rational growth — a necessary step for restoring balance and sustainability in China’s booming delivery economy.
