JD and Meituan's Takeout Battle: Declaring the First Casualty
26 April 2025 路 Uncategorized 路
Result
Ttl: JD and Meituan's Takeout Battle Reveals First Casualty
Cnt: This week marks a new phase in the heated battle between JD and Meituan over China鈥檚 takeout service market. On Monday, JD initiated the latest escalation by accusing competitors of coercing delivery riders to reject its orders. In response, Meituan denied these allegations but suggested that other platforms were responsible for service quality issues.
Since then, both companies have significantly increased their spending on rider benefits, reduced merchant fees, and subsidized consumers to rapidly gain market share. However, such strategies often lead to high costs and potential price increases once subsidies end. Retail expert Zhuang Shuai notes that new entrants like JD may struggle to rapidly increase order volumes against established players Meituan and Ele.me.
Moreover, Ele.me鈥檚 position is precarious amidst this intense competition. With its market share ranging between 15% and 30%, the company faces significant challenges in maintaining relevance. As JD and Meituan intensify their battle, Ele.me must work harder to stay competitive, emphasizing quality service through slogans like "Delivering Delicious Shrimp" while avoiding public disputes.
Ultimately, this renewed competition underscores the cyclical nature of market battles, where third players often struggle to survive, as seen previously in similar scenarios.
Ttl: JD and Meituan's Takeout Battle Reveals First Casualty
Cnt: This week marks a new phase in the heated battle between JD and Meituan over China鈥檚 takeout service market. On Monday, JD initiated the latest escalation by accusing competitors of coercing delivery riders to reject its orders. In response, Meituan denied these allegations but suggested that other platforms were responsible for service quality issues.
Since then, both companies have significantly increased their spending on rider benefits, reduced merchant fees, and subsidized consumers to rapidly gain market share. However, such strategies often lead to high costs and potential price increases once subsidies end. Retail expert Zhuang Shuai notes that new entrants like JD may struggle to rapidly increase order volumes against established players Meituan and Ele.me.
Moreover, Ele.me鈥檚 position is precarious amidst this intense competition. With its market share ranging between 15% and 30%, the company faces significant challenges in maintaining relevance. As JD and Meituan intensify their battle, Ele.me must work harder to stay competitive, emphasizing quality service through slogans like "Delivering Delicious Shrimp" while avoiding public disputes.
Ultimately, this renewed competition underscores the cyclical nature of market battles, where third players often struggle to survive, as seen previously in similar scenarios.