Everyone loses in the rage of China’s delivery wars

外卖大战

Economist

2025-07-31

8 分钟
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  • Boiled beff noodles gave He Wei a delectable idea.

  • A decade ago the businessman, based in China's wealthy coastal province of Jiangsu,

  • started a small restaurant selling them.

  • Now he has a chain of 100 such outlets.

  • But life is getting less palatable for millions of small eateries and cafés across China.

  • Not only is consumer spending sluggish,

  • but the tech platforms that operate China's food-delivery services are battling over prices,

  • often dropping the cost of products to next to nothing and forcing merchants such as Mr He to cover the bill.

  • Welcome to the front line of the "delivery wars".

  • It all began in February when JD.com, one of China's biggest e-commerce groups,

  • announced that it would enter the market for food delivery.

  • This posed an immediate threat to Meituan, a super app and leader in the field, and to Alibaba,

  • an e-commerce giant that runs its own food-delivery service called Ele.me.

  • Since then, the three have scrapped for market share in a business

  • which had a staggering 1.6trn yuan ($223bn) in deliveries last year.

  • By lowering prices across the country,

  • expanding the types of deliverable items and shortening delivery times,

  • each combatant hopes to keep customers scrolling exclusively on their apps.

  • Alibaba has attacked JD by offering "instant purchases" of goods such as electronics,

  • which it promises to get to customers in under an hour.