Meituan posts quarterly loss as price wars ease
Meituan reported a quarterly revenue of 91 billion yuan and a narrowed adjusted net loss of 4.97 billion yuan as industry subsidies began to stabilize. The company faces ongoing regulatory pressure following recent fines and government inspections aimed at preventing aggressive price competition.
MEITUAN-CLASS B reported an adjusted net loss of 4.97 billion yuan ($734.1M) for the quarter ended March 31. The loss narrowed from 15.1 billion yuan in the previous quarter, though it contrasts with a 10.9 billion yuan profit a year earlier as competition in the instant retail sector cooled. Investors are monitoring whether the end of aggressive subsidy wars in China will allow the delivery giant to return to sustainable profitability.
### Subsidy Wars Ease Under Regulatory Pressure Revenue rose 5.6% to 91 billion yuan, meeting analyst expectations despite a year of intense price competition. The one-hour delivery space faced disruption in early 2025 when e-commerce giants launched rival instant retail platforms. This "race to the bottom" triggered repeated criticism from regulators, leading to a recent reduction in discounting activity across the industry.
