In July, the State Administration for Market Regulation summoned the trio and asked them to dial it down. The three companies all called for resisting self-destructive competition — commonly referred to as “involution” in China — in their respective statements on Friday. Alibaba’s Ele.me said it will protect merchants’ margins and avoid irrational promotions, while Meituan said it won’t force businesses to participate in subsidies.
Meituan, Alibaba Group Holding, and JD.com Inc vowed Friday to curb “disorderly competition” and cease the price-based rivalry that’s threatened to erode margins and prompted warnings from government agencies.
Hong Kong-listed shares in all three companies rose after they issued statements within minutes of each other pledging to promote a fair business environment. The three companies have sought to out-do each other with a series of discounts and subsidies aimed at carving out a greater share of the US$80 billion-plus food delivery market.
