ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

China's food delivery king feels the heat from Alibaba

Tencent-backed Meituan sees margins shrink as Alibaba's aims for aggressive growth

HONG KONG -- Meituan-Dianping is the undisputed leader in China's fast-growing food delivery market, but Alibaba Group Holding aims to knock it from its perch by outspending it.

Beijing-based Meituan -- which is backed by Tencent Holdings -- controls nearly two-thirds of the market for on-demand food delivery, and its revenue is double that of Alibaba-owned rival But the latter is spending aggressively on subsidies to gain users, locking Meituan in a "death-grip price war," according to analysts. Analysts downgraded the company's shares after it announced results for the October-December quarter earlier this month.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more