Meituan posts second consecutive quarterly loss amid instant commerce battle

Big hit to the bottom line

Meituan (美团) reported a 15 billion yuan (US$2.2 billion) adjusted net loss for the fourth quarter, marking its second consecutive quarterly loss since 2022 and missing analyst expectations. The Beijing‑based delivery and local services giant said its core local commerce unit — covering food delivery and in‑store services — posted an operating loss of about 10 billion yuan as it boosted incentives for merchants, couriers and consumers. For the full year Meituan recorded an adjusted net loss of 18.6 billion yuan, versus an adjusted net profit of 44 billion yuan in 2024; its Hong Kong‑listed shares fell 3.67% to HK$86.70 ahead of the results.

The instant commerce price war

The company blames an escalated battle in instant commerce after JD.com (京东) entered the market in 2025. It has been reported that JD.com sweetened its push with billions of yuan in consumer and merchant subsidies, forcing Meituan and Alibaba Group Holding (阿里巴巴集团) into a prolonged and costly price war. The outcome? Lower margins across the sector as firms prioritize market share over near‑term profitability in a segment expected to exceed 1 trillion yuan in sales this year.

Stakes and wider context

This is not just a domestic tussle. China’s tech giants are operating under heightened regulatory scrutiny and shifting policymaker priorities since the 2020s, while the scramble for market share compounds pressure on unit economics. Can Meituan sustain aggressive subsidies and still deliver returns to investors? Investors and competitors will be watching closely as the instant commerce race tests whether scale and efficiency can ultimately win out over short‑term price competition.