Amid fierce competition in the food delivery price war, Meituan's revenue grew by single digits

MaticHoleFiller · 2026-03-28T09:35:36+00:00

Meituan announced a 4.1% increase in sales, with revenue of 92.1 billion RMB, and a net loss of 15.1 billion RMB, exceeding expectations. Intense competition and high costs are putting pressure on the company, and losses may continue. To address these challenges, Meituan is actively expanding into overseas markets and has achieved profitability in several countries.

MaticHoleFiller

2026-03-28 09:35:36

Abstract generation in progress

Meituan announced a moderate sales growth of 4.1%, and the company’s expansion into overseas markets has effectively alleviated the pressure from the increasingly fierce price wars with Alibaba Group and JD.com in the domestic market.

The Chinese food delivery giant achieved a revenue of 92.1 billion yuan (13.3 billion USD) for the quarter ending last December, aligning with analysts’ average expectations. The adjusted net loss was 15.1 billion yuan, higher than the market estimate of 13 billion yuan. Previously, Meituan reported its first loss in nearly three years for the quarter ending September, recording an adjusted net loss of 16 billion yuan.

The food delivery giant has been caught in a costly battle to defend its market share in the domestic market, investing billions in subsidies and marketing. The company warned in February that its full-year loss for 2025 could be between 23.3 billion and 24.3 billion yuan, and it may still struggle to achieve profitability in the first quarter. According to S&P Global data, Meituan’s share in the instant delivery market has fallen from about 70% at the end of 2024 to about 50% at the end of 2025.

Meituan’s competitors are similarly struggling. After suddenly entering the food delivery market, JD.com reported its first quarterly loss in nearly four years for the quarter ending last December. During the same period, Alibaba announced a 67% drop in quarterly profits, partly due to its massive investments in the instant e-commerce business.

Intense competition has drawn increasing scrutiny from regulators. Chinese regulatory authorities have held multiple meetings to warn relevant companies and launched investigations to end the price wars that are squeezing the interests of merchants and riders.

To mitigate the impact of fierce domestic competition, Meituan is actively expanding overseas. Founder Wang Xing stated last November that the company’s business in Hong Kong turned profitable last year. The Chinese food delivery giant has currently entered markets such as the UAE, Qatar, Kuwait, and Brazil. Edited by Chen Jiajing

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