Delivery Subsidy War "Ceasefire" - Industry Returns to Rational Competition
Securities Times reporter, Cao Chen
After a period of intense "subsidy war", on August 1st, Meituan, JD.com, and Ele.me, the three major delivery platforms, jointly announced their commitment to regulating promotional behaviors, resisting unfair competition. This marks the end of the loud and chaotic delivery subsidy war, as the industry returns to rational competition.
The delivery industry has developed to the point where it is an indispensable part of daily life for many people. While providing convenience to consumers, it also opens up new sales channels for businesses.
However, in recent times, the "zero-yuan" and other forms of excessive subsidies between delivery platforms have caused harm not only to businesses but also to consumer experience, courier rights, and the long-term development of the industry. From a short-term perspective, large-scale subsidies can indeed stimulate consumption and drive online order growth.
But from a deeper perspective, the drawbacks of "extreme subsidies" have become increasingly apparent. On one hand, businesses must compress their profit margins to participate in subsidy activities, which may even lead to losses; on the other hand, as online orders surge, employee workload increases but they do not receive additional remuneration; some businesses may also reduce food standards to control costs, directly harming consumer rights.
These issues not only affect the survival and development of restaurants, but also destroy the entire industry ecosystem. On the other hand, excessive competition disrupts the normal order of the market and may exacerbate unfair competition, creating potential risks.
Facing this situation, regulatory authorities have taken swift action. On July 18th, the State Administration for Market Regulation held a meeting with Meituan, JD.com, and Ele.me, requiring them to strictly follow relevant laws and regulations, take responsibility, and further regulate promotional behaviors, engage in rational competition.
Today, the three major platforms have collectively committed to resisting unfair competition, sending positive signals for industry development. Meituan has pledged to strictly comply with relevant laws and regulations, eliminating unfair competitive practices; JD.com and Ele.me jointly announced their commitment to resist unfair competition, protect businesses' real income and profit space, and refrain from large-scale "zero-yuan" and other irrational promotional activities.
These commitments demonstrate the platforms' reflection on industry issues and their determination to return to rational competition.
However, a promise is just the starting point. How to turn it into reality is the core concern for all parties involved. This requires platforms to fundamentally change their competitive logic, abandon excessive reliance on subsidies, and return to a rational competitive track – focusing on technological innovation and service quality optimization.
For example, optimizing delivery algorithms to improve efficiency, reduce delivery times, while enhancing courier rights protection mechanisms; strengthening food safety monitoring throughout the entire supply chain to ensure consumer peace of mind; providing more marketing tools, data analysis services to help businesses improve their management and profitability.
From a macro perspective, the delivery industry plays a crucial role in connecting businesses with consumers. Its healthy development is significant for driving consumption and promoting employment.
As delivery platforms collectively resist unfair competition, we believe that the industry will usher in new development opportunities. Only by establishing an ecosystem based on fair competition and mutual benefit can we stimulate market vitality, drive continuous innovation, and create more value for consumers, businesses, and couriers – achieving a win-win situation.