Meituan, a Beijing-based Chinese food delivery and local services platform, reported a third straight quarterly loss on June 1 as price competition in China’s one-hour delivery market showed signs of easing.

Revenue for the quarter ended March 31 rose 5.6% year on year to 91 billion yuan, or about US$13.45 billion, in line with estimates.

Adjusted net loss narrowed to 5 billion yuan (US$735 million) from 15.1 billion yuan (US$2.23 billion) in the previous quarter, but Meituan had posted a 10.9 billion yuan (US$1.61 billion) profit a year earlier.

Meituan’s core local commerce revenue was flat, while revenue from new initiatives rose 21% from a year earlier as consumer and rider incentives weighed on margins.

China’s instant retail market covers products delivered in about an hour and reaches hundreds of millions of users.

Competition has cooled after regulators criticized the sector’s “race to the bottom” and pushed platforms to make promotions more rational.

In April, China’s State Administration for Market Regulation said platforms including Meituan had failed to verify food vendor licenses, part of a probe that led to more than 3.6 billion yuan (US$532 million) in fines.

Analysts including Citi expect losses in Meituan’s core local commerce business to narrow further in 2026.

🔗 Source: Reuters

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