Five departments summon food delivery platforms: The subsidy war may come to an end?

Recently, the State Administration for Market Regulation, together with the Central Ministry of Social Affairs, the Central Cyberspace Administration, the Ministry of Human Resources and Social Security, and the Ministry of Commerce, held talks with platform companies such as JD.com, Meituan, and Ele.me to address the prominent issues in the current competition in the food delivery industry. The subsidy war in the food delivery industry has also raised concerns and attracted widespread attention from society. Li Chengdong, an e-commerce analyst and founder of the Dolphin Think Tank, believes, "After the talks, it is highly probable that the intensity of competition among food delivery platforms will decrease." Li Min also believes, "Platforms may make certain adjustments and optimizations to their subsidy strategies. Some of the unreasonable and excessive subsidy behaviors of food delivery platforms may be restricted, and the intensity of the subsidy war may be alleviated. For example, platforms may reduce large subsidies for new users, or reduce the intensity of discounts, in order to avoid improper competition and market disorder caused by subsidies."