Original — The Real Threat to Meituan (美团) Lurks in the Shadows

AI at the core of survival

It has been reported that Meituan (美团) has moved into a phase of deep “AI-ization” since the start of 2026, turning artificial intelligence from an experiment into an operational backbone. Internal figures obtained by Huxiu say AI-generated code accounted for roughly 52% of new code at the end of 2025 and approached 60% by the end of Q1 2026. Reportedly, a self-developed AI IDE called CatPaw—used alongside Meituan’s LongCat model and, unusually, capable of mixing in third‑party models—now powers more than 95% of coding tasks in at least one core business line. The aim: squeeze out repetitive labor, speed up delivery solutions (including drones and driverless carts), and push human productivity higher across the group.

Pressure, market share and an irreversible red line

Those efficiency bets come under intense financial and competitive pressure. Meituan’s Q4 2025 revenue was reported at ¥920.96 billion, with an operating loss of ¥160.74 billion; for full-year 2025 revenue reached ¥3,648.55 billion but operating loss widened to ¥250.41 billion (versus an operating profit of ¥368.45 billion in 2024). R&D spending rose to ¥26 billion (260亿元), up 23% year‑on‑year. At the same time, the “takeaway war” has trimmed margins and erased parts of Meituan’s local-commerce moat: industry data show Meituan and Taobao Flash Sale (淘宝闪购) roughly neck‑and‑neck by transaction value (about 45% each). What if market share slips past a certain “irreversible red line,” and new user habits harden? Then the incumbent could lose not just share but the ability to meaningfully recover it.

Response: decentralize, acquire, and double down on AI — fast

Meituan’s response has been tactical and structural. The group has reportedly loosened internal approvals, devolved more non‑core decisions to business unit leaders, expanded its S‑Team leadership to eight members to focus resources, and put AI and international expansion at the center of strategy. It also moved to shore up capabilities by buying Dingdong Maicai’s China business for ¥7.17 billion and plans targeted pushes in campus and daily‑goods categories this quarter. All of this plays out against a broader geopolitical backdrop: China’s AI race is unfolding amid U.S. export controls and global chip supply questions, making in‑house models and flexible tooling both a competitive and strategic priority.

Can AI and organizational agility turn defensive spending into a durable advantage? Meituan’s leadership appears to believe so. But investors and rivals will be watching closely: the battle is no longer just about food delivery pricing. It’s about whether faster code, smarter automation and looser decision‑making can restore margins before the market’s “red line” becomes permanent.