Food delivery is simply the first visible battlefield in a broader contest to shape how China shops, eats, and lives in the on-demand era
By Belmont NewsBeat
For years, China’s food delivery market seemed settled. Meituan commanded 65% of the share, while Ele.me, backed by Alibaba, played the role of a distant but stable second (33%). However, in early 2025, JD.com upset the balance.
With promises of zero commission for merchants, better treatment for riders, and a focus on quality restaurants, JD entered into a market that many thought was closed to new entrants. The ripples were immediate.
Meituan quickly changed its rules to give riders more protection and started pushing its instant delivery brand, Meituan Flash. Ele.me re-emerged with generous subsidies and a fresh integration into Taobao’s ecosystem. Within months, what seemed like a sleepy, stable sector became one of the most contested fronts in China’s digital economy.
New rules of the game
Beneath the noise of subsidies and slogans, each company is playing a deeper game. JD.com’s interest is not in the thin margins of takeaway meals. Instead, it views food delivery as a high-frequency gateway to its app, and a chance to bring consumers back several times a day and present them with wider offerings — with everything from electronics to cosmetics. JD’s strategy of free commissions, rider-friendly policies, and a premium image is less about grabbing market share today than about embedding the platform more firmly into the rhythms of everyday life.
Meituan, on the other hand, cannot treat delivery so lightly. For it, meals are not just a product line but the beating heart of a broader ecosystem. Every order sustains its network of restaurants, riders, and users, which in turn fuels services like travel, entertainment, and local commerce. JD’s attack on merchants and riders struck directly at this foundation.
Ele.me’s strategy is different again. Long a laggard in market share, its renewed push has less to do with competing rivals than with securing Alibaba’s strategic needs. By tying food delivery to Taobao, Ele.me provides Alibaba with capabilities that are critical for the future of e-commerce. Its subsidies and integrations are less a bid for standalone dominance than a move to ensure that Alibaba remains a serious player in the era of instant retail.
The bigger picture
What appears on the surface as a price war over meal deliveries is in fact a struggle over something larger: control of instant retail. This emerging sector promises to deliver not just meals but also groceries, household goods, and even electronics within an hour. Already valued at ¥650 billion in 2023, it is expected to more than triple by the end of the decade.
For JD, instant retail extends its logistics strengths and protects its core categories. For Meituan, it opens a path beyond the thin margins of food delivery and allows it to monetize its vast user base in new ways. For Alibaba, it ensures Taobao remains central to everyday shopping like today.
Yet this struggle is not without costs. The subsidy battles have already eroded market value, and regulators have begun to intervene, warning the platforms that competition must remain fair and sustainable. For the companies involved, there is risk that the pursuit of dominance in the next frontier could consume more value than it creates.
Still, the direction is clear. The fight has evolved into a strategic clash over the infrastructure of everyday consumption. Food delivery is simply the first visible battlefield in a broader contest to shape how China shops, eats, and lives in the on-demand era.
Who will come out on top in this competition? And how will the industry evolve in the future? We will have to wait and see.