Meituan Clarifies: “At All Costs” Refers to Opposing Low-Quality, Low-Price Competition

On May 27, a Meituan representative clarified that the company's statement to “take whatever measure it takes to win the game,” made during its May 26 earnings call, was misinterpreted. The phrase was intended to signal opposition to unsustainable “low-quality, low-price” competition. Meituan stated it will continue investing in the sector’s ecosystem, including support for delivery personnel and merchant subsidies, with the aim of promoting healthy industry development.

During the earnings call, Meituan CEO Wang Xing mentioned the opposition to “involution-style” competition four times. He noted that while other platforms continue to offer high-level subsidies, Meituan plans to increase investment in response to market competition, while adhering to principles of fair and orderly practices.

Wang did not mention any new subsidy plans but highlighted two key issues: the current low-quality, low-price competitive model is unsustainable, and platforms must balance the interests of consumers, merchants, and delivery riders for long-term viability. Additionally, both delivery platforms and merchants should avoid reverting to earlier strategies driven by aggressive subsidies. Meituan intends to oppose involution in the industry and help merchants reduce marketing complexity and operational burdens.

Regarding future initiatives, Wang emphasized resisting marketing involution, exploring new growth through product innovation, and enhancing service quality. He stated, “We will actively advocate against involution in the industry, support merchants in reducing operating pressure, and promote a mature and rational market that competes on quality and service.”

A Meituan spokesperson further explained that the food delivery and retail industries in China have entered a new stage. Aggressive subsidy-driven competition no longer aligns with merchant interests or the industry’s direction. Since February, Meituan has responded to national policy by increasing investment in retail technology R&D and participating in international competition. “The main goal now is to continue investing to support the long-term and stable development of the ecosystem,” the spokesperson noted.

Since early 2024, “anti-involution” has remained a central theme in the food delivery sector. Platforms such as Meituan and Ele.me introduced various burden-reduction measures throughout the past year.