Meituan CEO Sees Rational Competition in Food Delivery, Predicts Sustainable Profitability

Deep News06-01 20:11

Meituan CEO Wang Xing stated that competition in the food delivery sector is becoming more rational, with a shift towards operational efficiency and user experience.

He noted that even as subsidies are scaled back, user growth and engagement remain healthy, strengthening the company's position in the mid-to-high value order segment.

Wang Xing indicated that the profit per order (UE) trend for the second half of the year will depend on the competitive landscape.

He expects a significant improvement in UE for the second quarter compared to the first, driven by seasonal benefits and a more rational competitive environment.

Wang Xing emphasized that past irrational competition proved that growth solely reliant on subsidies is unsustainable.

He anticipates more rational competition ahead, particularly with regulatory guidance, and believes the long-term UE for the food delivery business will return to a reasonable level.

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