Meituan posts second straight quarterly loss

Meituan reported a second straight quarterly loss as heavy subsidies in China’s instant commerce fight with Alibaba and JD.com hurt margins.

The Beijing-based delivery firm posted an adjusted net loss of 15 billion yuan (US$2.2 billion) for Q4 ended Dec 31, versus an adjusted profit of 9.8 billion yuan (US$1.4 billion) a year earlier and a 12.9 billion yuan (US$1.8 billion) average analyst estimate.

Its core local commerce unit posted a 10 billion yuan (US$1.4 billion) operating loss, and Meituan reported a full-year adjusted net loss of 18.6 billion yuan (US$2.6 billion) compared with a 44 billion yuan (US$6.3 billion) adjusted profit in 2024.

Regulators have urged firms to curb price wars, while Meituan said it is expanding overseas via its Keeta delivery service.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

A costly price war ended in a stalemate, not a defeat

Meituan, Alibaba, and JD.com poured about 80 billion yuan into subsidies and ads in 2025, turning the contest into an expensive grind 1.
Alibaba, owner of the Ele.me food-delivery app, saw Q3 2025 earnings drop by about half. JD.com’s newer units, including food delivery, lost almost 16 billion yuan that quarter 1.
China’s takeout market barely shifted. Meituan kept roughly 50% share, with Alibaba next and JD.com behind 1.
The heat eased after regulators warned the companies. Meituan, Alibaba, and JD.com promised in August 2025 to rein in price wars 2.

China’s delivery war playbook is becoming a global export

Competition at home pushed Meituan abroad. It is taking its subsidy-heavy approach and tight logistics to Keeta, its international delivery service 3.
In Saudi Arabia, Keeta reached about 10% of orders in roughly four months 3.
As discounts shrink in China, rivals are putting money into facilities and software that can last 2.
Meituan and JD.com are building thousands of central kitchens, large food-prep sites meant to shorten delivery times, in selected hubs 4. Meituan is also adding a new AI assistant to its app. It expects its real-world fulfillment data to matter more than price cuts 5.