Meituan (03690.HK) CEO Wang Xing reiterated his stance on food delivery competition during the company’s 2025 annual general meeting on June 9, outlining three key positions: welcoming new market entrants, opposing unhealthy competition practices, and expressing long-term confidence in the industry.
Embracing Competition While Rejecting “Internal Roll”
Wang acknowledged that recent platform entrants demonstrate continued growth potential in China’s food delivery and instant retail markets. “We welcome more participants to join, invest together, and innovate together to accelerate industry development,” he stated.
While recognizing competition as normal, Wang strongly criticized what he termed “unhealthy and ineffective ‘internal roll’ competition,” describing it as unsustainable for both platforms and merchants. “Meituan firmly opposes internal roll,” he emphasized.
Concerns Over Unsustainable Pricing Practices
The CEO specifically warned against renewed competition characterized by large promotions and below-cost pricing. “After more than a decade of development with multiple rounds of competition and adjustment, the industry should have reached a relatively healthy development stage,” Wang explained.
He pointed to recent order volume surges driven primarily by heavily subsidized low-value items like milk tea and coffee: “With sufficient subsidies, someone who didn’t drink milk tea might start consuming it, or increase from one to two cups daily. However, below-cost promotions are unsustainable for both platforms and participating merchants.”
Alignment With Regulatory Direction
Wang suggested such practices contradict the government’s anti-internal roll policy across industries, expressing confidence that regulators would introduce guidance measures. “Meituan will very resolutely oppose internal roll,” he reaffirmed.
Despite anticipating short-term intensified competition and increased investment, Wang maintained optimism about accelerated industry growth and Meituan’s long-term prospects.
Financial Performance and Competitive Resolve
This marks Wang’s second public commentary on delivery competition, following earlier earnings call remarks where he vowed to “take all necessary measures to win this competition.” The CEO had previously stated: “It seems every internet participant is willing to invest huge amounts in this race. Meituan is determined to be the market winner.”
The company recently reported strong Q1 2025 results, with total revenue growing 18.1% year-over-year to 86.6 billion yuan and profits nearly doubling to 10.1 billion yuan. Adjusted net profit increased 46.2% to 10.9 billion yuan.
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