Meituan's Profits Plummet Amidst Heightened Competition in Food Delivery

Reported 2 days ago

Meituan, a leading food delivery service in China, experienced a staggering 89% decline in adjusted net profit for the second quarter, attributed to increasing competition in the instant retail sector. Although the company commands nearly 70% of China's delivery market, it anticipates high customer retention costs and pressure on profit margins as rivals like JD.com and Alibaba escalate their efforts in the food delivery arena. Meituan is also adapting by expanding internationally, including investments in markets like Brazil and the Middle East.

Source: YAHOO

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