Chinese on-demand service platform Meituan announced a new daily order record of 120 million across its instant retail services on July 5.

Instant retail is a rapidly growing sector in China that encompasses the delivery of a wide range of products from groceries and fresh produce to electronics and pharmaceuticals typically within 30 to 60 minutes.

This increase coincides with the peak summer consumption period, which is traditionally a promotional season for food delivery services. Data shows that late-night snack orders on weekends continue to drive significant traffic.

In comparison, Meituan’s daily orders peaked at over 90 million during last summer. The company faces competition in the instant retail and food delivery sectors as consumers increasingly rely on online platforms for convenience. The sustainability of this growth remains uncertain as market conditions evolve.

🔗 Source: Huxiu

🧠 Food for thought

1️⃣ Meituan’s dominance showcases China’s explosive food delivery market growth

Meituan’s achievement of 120 million daily orders highlights the tremendous growth in China’s food delivery ecosystem over recent years.

The company has expanded from just 32.3 million daily average transactions in Q1 2021 to now processing over 100 million food delivery orders in a single day, representing extraordinary growth in just two years 1.

This dominance is reflected in Meituan’s market share of approximately 65-70% of China’s food delivery sector, significantly outpacing competitors like Alibaba’s Ele.me which holds less than 30% 2, 3.

The broader context shows why this milestone matters: China’s online food delivery market was valued at $81.9 billion in 2024 and is projected to reach $197.9 billion by 2033, growing at a CAGR of 9.79% 4.

Consumer habits are driving this growth, with research showing 35% of users order food 1-3 times weekly and another 35% order 4-6 times weekly, demonstrating how deeply food delivery has become integrated into daily life 2.

2️⃣ The “Three Kingdoms Rivalry” is intensifying competition beyond price

Meituan’s milestone comes amid what industry observers call the “Three Kingdoms Rivalry” between Meituan, Ele.me, and JD.com, with competition expanding beyond consumer discounts to include restaurant and rider recruitment strategies 3.

JD.com has aggressively entered the market by offering restaurants one year of fee exemptions for early joiners, directly challenging Meituan’s established restaurant network 3.

The battle for delivery talent has become equally fierce, with JD.com promising better welfare and social insurance to attract riders, forcing Meituan to enhance its own rider benefits to maintain its delivery workforce 3.

Recent Meituan developments