BUSINESS

Meituan Swings to $3 Billion Loss as Delivery Price War Bites

Published: Mar. 27, 2026 12:36 a.m. GMT+8

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Meituan released its fourth-quarter and full-year 2025 earnings report on the evening of March 26. Photo: VCG

Chinese food delivery giant Meituan swung to a staggering net loss of 23.4 billion yuan ($3.4 billion) in 2025, reversing a profit from the previous year as a blistering domestic price war and aggressive overseas expansion took a heavy toll on its bottom line.

The results highlight the rising cost of defending market share in China’s crowded delivery market and the risks Chinese internet companies face as they push into new markets for growth.

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Meituan reported a net loss of 23.4 billion yuan ($3.4 billion) in 2025, reversing a profit from 2024, mainly due to a fierce price war and costly overseas expansion.
Revenue grew 8.1% to 364.9 billion yuan, slowing significantly, while the core local commerce segment turned from a 52.4 billion yuan profit to a 6.9 billion yuan loss.
Regulatory scrutiny increased, the subsidy battle hit shares (down 40%), and Meituan continued investing in AI and international operations.

AI generated, for reference only

Who’s Who

Meituan: Meituan, a Chinese food delivery giant, reported a net loss of 23.4 billion yuan in 2025 due to an intense price war in China and costly international expansion. Despite an 8.1% revenue increase, its core local commerce segment suffered an operating loss. Meituan is facing increased regulatory scrutiny and focusing on refining its international operations and expanding its grocery retail business.

JD.com: JD.com formally entered the Chinese delivery market in February 2025, intensifying a subsidy battle within the sector. Alongside Alibaba and Meituan, JD.com was among seven large tech firms summoned by regulators due to concerns about "irrational competition."

Alibaba: Alibaba is a tech firm that faces increased regulatory scrutiny in China. It was among seven large tech firms summoned by China's State Administration for Market Regulation due to concerns about "irrational competition." Alibaba also announced a 50 billion yuan subsidy for its Taobao instant retail business in July [2025], intensifying a domestic price war.

Dingdong (Cayman) Ltd.: Meituan agreed to acquire nearly all of Dingdong (Cayman) Ltd.'s China operations for $717 million in February 2026. This acquisition aims to strengthen Meituan's position in eastern China's grocery retail business.

AI generated, for reference only

What Happened When

2025：: Meituan reported a net loss of 23.4 billion yuan, reversing a profit from 2024.

2025：: Meituan’s new initiatives segment widened its operating loss to 10.1 billion yuan from 7.3 billion yuan in 2024.

February 2025：: JD.com formally entered China’s food delivery market, starting a subsidy battle.

July 2025：: Alibaba announced it would spend 50 billion yuan on subsidies for Taobao instant retail business, intensifying the price war.

Fourth quarter of 2025：: Meituan’s KeeTa expanded into Qatar, Kuwait, UAE and Brazil, incurring upfront costs.

Late 2025：: KeeTa achieved positive unit economics in Hong Kong.

February 2026：: China’s State Administration for Market Regulation issued antitrust compliance guidelines for internet platforms and summoned seven large tech firms including Meituan.