Meituan vs. Alibaba vs. JD.com: How China’s Delivery Giants Are Paying to Win You Over

On July 5–6, Alibaba’s instant commerce arm, Taobao Shangou, tied its own record by completing 80 million on-demand deliveries in a single day, marking a 15% weekly surge in daily active users—now estimated at 230 million.

Meituan responded in kind, logging a jaw-dropping 150 million daily orders during the same weekend. JD.com also joined the fray, offering 25 million daily food delivery orders by June.

Together, these three platforms pushed daily order volume north of 230 million, fueled by an aggressive campaign of consumer incentives.

Fueling the Fire: Subsidies and Super Saturdays

Alibaba’s “Super Saturdays” initiative offered subsidies of up to 188 yuan (~US$26) every weekend over a 100-day period. Meituan went even further, offering free milk tea, while JD.com promised 100,000 crayfish servings nightly at just 16.18 yuan. These deep discounts overwhelmed merchants—some coffee shops and drink stands halted in-store services due to overwhelming orders.

Market Share, Profit, and Strategy

Meituan led the food delivery space in 2024 with a 65% share, while Ele.me held about 33%; other platforms combined for just 2%.Alibaba is investing heavily—bankrolling a ¥7 billion (US$1 billion) push into instant commerce—while JD.com committed $1.4 billion. This resemble past subsidy wars circa 2016, but unlike then, the current effort plays out amid weak consumer sentiment and thin margins, prompting regulatory scrutiny.

Tech, Operations, and Merchant Overload

Rapid scaling has tied data and tech tightly to delivery execution. Meituan reported 30% year-over-year growth in 30-minute deliveries, while platforms lean on AI for order routing and automated support. Merchant experiences speak volumes: in Sichuan’s Daizhou, one drink franchise saw orders explode from dozens to over 300 daily, while in Chengdu, outlets processed 700–800 orders per day.

Beijing’s Two-Pronged Signal

State media has offered mixed messages. A People’s Daily commentary warned that infinite subsidies risk distorting markets. Another praised their role in revitalizing small businesses, raising consumer appetite, and supporting workers. The implicit message? Regulators allow “orderly competition,” but expect platforms to curb waste and shift toward innovation and sustainability.