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.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

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