Lates News

On September 15th, the New China Daily Telegraph published a report titled "Meituan: Actual income of small and medium-sized merchants reduced by more than 15%". Meituan stated that based on the data currently available, price wars and subsidies have caused the actual income of small and medium-sized merchants to decrease by more than 15%, and in the medium to long term, it will weaken their operational capabilities and livelihoods. The first summer "takeout war" has exhausted consumer enthusiasm and willingness to consume, so after entering September, many shops have seen a decline in order volume compared to the same period last year. The second difference between the growth rate of orders from small and medium-sized merchants and large branded chain stores has further widened. At the same time, the subsidy intensity for takeout is much lower than that for dine-in, making it increasingly difficult for small businesses and family owned shops to survive. Finally, the resources of platforms that initiate subsidies will further concentrate on large brands, widening the gap in investments in marketing, research and development, innovation, and service resources.