Meituan posted another quarterly loss, according to a report from Inside Retail Asia , but the Chinese food-delivery company said the intense price war that has squeezed margins is beginning to subside. The company’s revenue growth has slowed and profitability has been under pressure for several quarters, but executives expressed optimism that the worst of the competitive dynamics may be over.
The loss underscores the challenges Meituan faces as it invests heavily in new initiatives like community group buying and grocery delivery while fending off rivals such as Ele.me and Didi. Revenue in the latest quarter missed analysts’ estimates, and operating expenses remained elevated due to subsidies and logistics costs.
Despite the red ink, Meituan’s stock rose after the earnings call as management signaled a shift away from breakneck spending on discounts. Analysts say the moderation of the food-delivery war could improve industry profitability, though regulatory scrutiny and changing consumer habits remain risks.