Beijing Urges Food Delivery Giants to Cool Down Amid Intensifying Feud

Chinese regulators have stepped in to address the fierce competition among major food delivery companies like JD.com, Meituan, and Alibaba’s Ele.me. These companies were summoned for a discussion led by the State Administration for Market Regulation (SAMR), focusing on fair practices and legal compliance.

The regulatory meeting aimed to tackle key issues in the food delivery industry. The SAMR urged these platforms to follow laws related to e-commerce, competition, and food safety. The goal is to ensure consumer rights and protect everyone involved, including restaurants and delivery workers.

Following the news, the topic became highly discussed on social media, trending on Weibo. Shares for JD.com, Meituan, and Alibaba saw an uptick, with JD.com gaining 2.9%, Meituan rising by 1%, and Alibaba increasing by 1.6%. Investors seem hopeful that the intense price wars will ease up.

This clash between JD and Meituan recently escalated, with both companies accusing each other of unfair tactics. This public feud resulted in a significant drop, erasing about $13 billion from their combined market value in just one week.

Market experts suggest that while competition is crucial for growth, it should not undermine ethical practices. According to a recent survey by the China Internet Network Information Center, nearly 70% of consumers have expressed concerns about delivery reliability and food safety, underscoring the need for regulation.

As more people rely on food delivery services—especially after the pandemic—maintaining fairness and safety is more important than ever. Promoting responsible competition will help protect not only the businesses but also consumers and workers involved in this vital industry.

For further insights into the impact of food delivery services on consumer choices, you can check this report from Statista.

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JD.com, Meituan, Alibaba, Ele.me, food delivery, regulation, competition, courier, instant commerce, China internet, market capitalisation, Weibo, Sandy Xu Ran, SAMR, social work, China