Chinese on-demand delivery firm Meituan has reportedly reached 90 million daily food delivery orders this month, according to tech outlet Leiphone.com, which cited internal data.

The company has not confirmed this report.

If accurate, the figures highlight Meituan’s dominance in the domestic market, where it holds a 70% share.

The milestone comes amid rising competition from JD.com and Alibaba’s Ele.me.

JD.com, which entered the food delivery sector in February, reported 25 million daily orders on June 18.

Alibaba said last month that Ele.me and Taobao Instant Commerce together reached 40 million daily orders.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Incumbent advantage creates high barriers to entry in mature delivery markets

Meituan’s continued 70% market share despite aggressive competition demonstrates the power of consumer habits in delivery platforms.

The company’s strong market position is reinforced by its massive delivery infrastructure, with approximately 114,731 employees supporting its operations 1.

This pattern reflects global market dynamics where established delivery platforms maintain dominance through network effects, as more customers attract more restaurants, creating a self-reinforcing cycle.

Even with JD.com’s rapid growth to 25 million daily orders and Alibaba’s 40 million combined orders, they remain significantly behind Meituan’s 90 million daily orders, highlighting the challenge of displacing an entrenched market leader.

The global food delivery market has tripled since 2017 to over $150 billion, creating powerful incumbents across regions who benefit from economies of scale in logistics, technology, and brand recognition 2.

2️⃣ Zero-commission strategies reshape delivery economics with uncertain sustainability

JD.com’s entry strategy with zero-commission deals for merchants represents a significant challenge to traditional delivery platform economics.

Recent Meituan developments