On December 27, the Financial Times published a report stating that Meituan has made substantial investments in subsidies to go head-to-head with Alibaba and JD.com in the fiercely competitive takeout market. This aggressive move has led to Meituan's largest quarterly loss since 2018 and has also cast a shadow over its overseas expansion plans.

Meituan's management team has been diligently conducting weekly simulations to gauge competitors' subsidy investments and devise appropriate response strategies. This year, the subsidy war intensified as JD.com and Alibaba jumped into the fray, compelling Meituan to roll out coupons in a bid to safeguard its market position. The consequence? An average loss of roughly 1 yuan per instant delivery order and a staggering third-quarter loss of 16 billion yuan.

This financial setback has ignited a flurry of discussions among senior management and investors, with the central question being whether the company can sustain its overseas expansion amidst such financial strain. Alibaba's resurgence has dramatically altered the market landscape, with its daily active users for takeout merchant applications now reaching 80% of Meituan's user base.

Forecasts suggest that Meituan's market share in instant delivery is poised to decline from 73% in 2024 to 55% in 2027. In contrast, Alibaba's share is expected to surge from 21% to 40% during the same timeframe. Although Meituan has ventured into markets like Hong Kong (China), Saudi Arabia, and Brazil, it has encountered hurdles such as cut-throat competition and regulatory scrutiny.