TECH

China’s Regulator Ramps Up Push to Curb Food Delivery Subsidy War

Published: Sep. 10, 2025 5:00 a.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

China’s market watchdog has stepped up oversight of the country’s intensifying food delivery subsidy battle, warning leading platforms to steer clear of unfair competition as a wave of cut-price campaigns rattles the industry.

At a press briefing Tuesday, Wang Qiuping, spokesperson for the State Administration for Market Regulation (SAMR), said the agency had summoned top platforms for talks and secured public pledges to rein in “malicious subsidies” and comply with the law.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China’s market regulator, SAMR, warned major food delivery platforms against unfair competition amid aggressive subsidy battles, summoning Meituan, JD.com, and Ele.me for compliance talks.
Platforms committed to standardizing subsidies, improving service, and supporting riders and merchants after regulators intervened.
The fierce price war, intensified by Alibaba’s 50-billion-yuan subsidy plan, led to significant profit declines: JD.com (down 50.8%), Meituan (core services profit down 75.6%), and Alibaba (EBITDA down 21%).

AI generated, for reference only

Who’s Who

Meituan: Meituan is one of China's top e-commerce platforms specializing in food delivery. It has been involved in a subsidy battle for market share, leading to a significant drop in its operating profit from core local services by 75.6%. Meituan, along with other platforms, was summoned by China's market watchdog to address concerns about unfair competition and "malicious subsidies."

JD.com: JD.com is one of the top e-commerce platforms in China and has recently launched its food delivery business, challenging Meituan and Ele.me. This expansion has led to aggressive subsidies and a "price war" in the food delivery market, resulting in a 50.8% decrease in JD.com's net profit attributable to shareholders in the second quarter. The State Administration for Market Regulation (SAMR) has pressed JD.com, along with other platforms, to adhere to fair competition rules and standardize subsidies.

Alibaba Group: Alibaba Group is a major e-commerce platform in China. Its food delivery service, Ele.me, is backed by Alibaba. The company upgraded its "Taobao Flash Sale" service in April, utilizing Ele.me's delivery infrastructure, and launched a significant 50-billion-yuan subsidy plan in July amid a competitive food delivery market. This competition has impacted Alibaba's China commerce group, with a 21% drop in adjusted EBITDA.

Ele.me: Ele.me is one of China's top e-commerce platforms, backed by Alibaba Group. It is a major player in the food delivery market and has been involved in a subsidy battle with competitors like Meituan and JD.com. Ele.me has been warned by China's market watchdog, SAMR, to adhere to fair competition rules and has pledged to standardize subsidies and promote healthy competition.

AI generated, for reference only

What Happened When

February 2025：: JD.com officially launched its food delivery business, intensifying competition with Meituan and Ele.me.

April 2025：: Alibaba upgraded its 'Taobao Flash Sale' service, leveraging Ele.me's delivery infrastructure.

Second quarter of 2025：: JD.com’s net profit attributable to shareholders fell 50.8% to 6.2 billion yuan; Meituan’s operating profit from core local services plunged 75.6%, dragging overall net income down nearly 97%; Alibaba’s China commerce group saw adjusted EBITDA drop 21%, with group net profit down 18% under non-GAAP measures.

July 2025：: Alibaba unveiled a yearlong 50-billion-yuan ($7 billion) subsidy plan.

July 18, 2025：: SAMR pressed Meituan, JD.com, and Ele.me to adhere to fair competition rules at a meeting.

Early August 2025：: Meituan, Ele.me, and JD.com issued statements pledging to standardize subsidies and promote healthy competition.

September 9, 2025：: Wang Qiuping, spokesperson for SAMR, announced at a press briefing that the agency had summoned top platforms, securing public pledges regarding food delivery subsidy practices.

AI generated, for reference only