Chinese authorities have repeatedly called for an end to the 'race to the bottom' battle among food delivery platforms, according to a report by Inside Retail Asia. The government is targeting what it describes as 'irrational competition' that has led to unsustainable pricing and labor practices.
The food-delivery market in China has been dominated by major players like Meituan and Ele.me, which have engaged in aggressive subsidies and price wars to capture market share. This competition has often resulted in losses for the platforms and increased pressure on delivery riders, who face long hours and low pay.
The government's intervention signals a shift toward more sustainable business practices, with potential regulations to ensure fair competition and better working conditions. The move is part of broader efforts to stabilize the tech sector and address social inequalities exacerbated by the gig economy.