A delivery worker for Meituan rides a motorcycle in Shanghai, China, on Aug. 25.
(Bloomberg) — Meituan’s shares dropped its most since April after warning of losses this quarter from a price-based battle with Alibaba Group Holding Ltd. and JD.com Inc., wiping out a combined $27 billion in market value from the three internet commerce leaders.
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China’s food delivery leader issued its dire prediction after reporting “irrational competition” eradicated most of its profit in the June quarter. That spooked investors already nervous about deepening losses in the online arena, prompting a series of downgrades on Meituan. Shares in Alibaba and JD both slid about 5%, while Meituan was down 13% at one point. The Hang Seng Tech Index led losses in Asia on Thursday, slumping as much as 2.3%.
The plunge in profitability illustrates how Meituan is facing its greatest challenge in years from twin rivals that — till recently — had largely ceded the domestic meal sector. That changed in 2025 when JD.com, pursuing growth during a consumption downturn, and Alibaba’s Ele.me began offering generous subsidies to cash-strapped diners.
Meituan Shares Slump After Warning Major Losses: Street Wrap
The Beijing-based company now expects “significant losses” for its core local commerce business including food delivery in the current quarter, Chief Financial Officer Chen Shaohui told analysts on a post-earnings call on Wednesday.
“We expect there will be continued fierce competition in the near term,” Chen said. “That will bring negative impact on our financial results.”
Read: JD.com Billionaire’s Stunt Reignites China’s Food-Delivery Feud
The three-way battle in the food arena eroded profitability across the sector and forced Meituan to defend its core business on multiple fronts. This month, JD.com reported a halving in net income for the quarter. Alibaba has posted muted growth and is set to report earnings on Friday.
In past months, the trio has invested billions of dollars on incentives and hiring delivery riders. This strategy backfired with investors, who sold off shares in Meituan and JD.com, erasing roughly $100 billion of their combined market value at one point.
Following a warning from industry regulators, the three corporations in August pledged to cease their “disorderly competition” and avoid a self-destructive price war.
