Price war hits Meituan shares

Meituan’s shares dropped the 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 yesterday, 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.