Meituan: Actual income of small and medium-sized merchants decreased by more than 15%

On September 15th, the "Xinhua Daily Telegraph" published a report titled "Meituan: Actual income of small and medium-sized merchants decreased by more than 15%". Meituan stated that based on the data currently available, price wars and subsidies have caused a decrease in actual income for small and medium-sized merchants by more than 15%, and this will also weaken their operational capacity and livelihood in the medium to long term. Firstly, the summer "take-out war" has depleted consumer enthusiasm and willingness to spend, so after entering September, many stores have seen a decrease in orders compared to the same period last year. Secondly, the gap between the order growth rate of small and medium-sized merchants and that of large brands and chains has further widened. At the same time, the subsidy for take-out is high, prices are lower than dining in, and it will become increasingly difficult for small and medium-sized merchants and family-owned stores to survive. Thirdly, the platform initiating the subsidies will further concentrate resources towards large brands, and the gap in investment in marketing, research and development, and service resources will also widen.