Wang Xing: Meituan Waimai's profit margin target is set at about 3%, subsidies are not a long-term solution.

On August 27, during the phone conference after the financial report was released, Meituan CEO Wang Xing once again talked about the intense food delivery battle. "First of all, we firmly oppose the phenomenon of 'internal competition'," Wang Xing stated. He emphasized that the current competition in the food delivery market continues to intensify, and Meituan will continue to defend its market position. "Meituan has grown in the competition, and we have achieved our leading position today through continuous competition." He stressed that the company maintains the long-term profit assumption of "1 RMB per order, profit margin of around 3%" by 2025. Although the company will increase strategic investment in the third quarter, which may temporarily pressure some financial indicators, the management believes that competition will eventually return to rationality.