The Beijing-based company now expects “significant losses” for its core local commerce business including food delivery in the current quarter, Chief Financial Officer Chen Shaohui told analysts on a post-earnings call on Aug 27.
Meituan shares dropped almost 10% after the company warned of major losses this quarter from a price-based battle with Alibaba Group Holding Ltd. and JD.com Inc. China’s food delivery leader issued its dire prediction after reporting “irrational competition” had slashed its profit in the June quarter. Meituan’s net income plummeted 97% to RMB365.3 million despite a 12% rise in revenue. The warning further unnerved investors, who had wiped out about a quarter of Meituan’s market value in 2025. Some analysts also downgraded their ratings.
The plunge in profitability illustrates how China’s leading food delivery platform is facing its greatest challenge in years from twin rivals that — till recently — had largely ceded the domestic meal arena. In 2025, that changed when JD.com, pursuing growth during a consumption downturn, and Alibaba’sEle.me began offering generous subsidies to cash-strapped diners.
