In February of this year, JD.com made a high-profile entry into the food delivery market, sparking a new wave of competition that puts significant pressure on Meituan, which has long dominated the sector. The latest financial report for August indicated that while Meituan's revenue grew in the second quarter, its profit metrics saw a sharp decline, with adjusted net profit plummeting by 89% year-on-year to just 1.49 billion yuan, highlighting the profitability challenges arising from intensified competition.

Despite these difficulties, Meituan continues to leverage its unique competitive advantage—a mature fulfillment ecosystem and technological scheduling system—to maintain the stability of its core business. In response to strategies employed by giants like Alibaba and JD.com, which aim to reshape consumer scenarios through high-frequency business offerings, the local life service war over users, data, and scenarios has transformed into a long-term battle of endurance and ecological collaboration.

01. The Core of Meituan's Moat: Large-Scale Timely Fulfillment Capability Although external competition is pressuring profits, Meituan's core barrier remains its robust fulfillment capabilities. Specifically, Meituan's moat lies in its long-standing leadership in China's local life service market, reflected through multi-dimensional ecological coordination, technology-driven efficient fulfillment, monopolization of user mentality, and economies of scale.

Timely fulfillment capabilities are paramount. For instance, delivering a new order involves not only quickly selecting the nearest rider but also gauging their capacity to handle existing and new orders, and ensuring collaboration with merchants regarding food preparation time to prevent delays.

In summary, food delivery is a massive, intricate, and meticulous engineering project. Achieving effective delivery that saves time and effort isn't straightforward; it necessitates the accumulation and synergy of technology and experience from the platform, merchants, and riders.

Thus, the ability to fulfill orders promptly is not only the foremost aspect of Meituan's moat but also the foundation and engine of its entire business model. It consists of two closely integrated components: One is a vast network of millions of active riders, forming the "capillary system" that penetrates every corner of the city—a tangible, heavy asset that cannot be replicated swiftly. The other is the intelligent scheduling system, which acts as the "heart," driving the efficient flow of this capillary network, an intangible asset nourished over the years by Meituan's massive real-order data and cutting-edge algorithms.

02. Substantial Subsidies Increase Consumer Tolerance for Delivery Times However, amid fierce competition, consumer perceptions are subtly shifting. Large subsidies have not only reshaped buying decisions but also indirectly altered expectations surrounding delivery timeframes.

Imagine this scenario: on a rainy night, after a long and tiring day at work, you open the food delivery app craving a warm dinner. The app alerts you that due to inclement weather, delivery is expected to take 60 minutes—double the usual time. You frown but then realize that the merchant is offering a substantial subsidy with a "discount voucher" and "free delivery." Ultimately, you pay only 15 yuan for a meal originally priced at 40 yuan; some beverages come down to single-digit prices after subsidies. Suddenly, that long 60-minute wait seems more bearable.

The underlying consumer psychology can be explained through a key logic: subsidies create a “compensation effect,” silently shifting our internal value scale.

Initially, the economic savings translate into a “payment” for time. When you receive a significant subsidy, you subconsciously calculate: “I saved 15 yuan, so this additional wait time is the lower 'price' I am paying.” Waiting no longer feels like a mere drain of time; rather, it becomes an acceptable form of compensation for achieving a “good deal.” The time cost is effectively offset by the economic benefit.

Moreover, subsidies reshape “mental accounting,” lowering the thresholds and expectations of decision-making. In purchasing decisions, we mentally maintain an “food delivery account.” Paying full price, or even extra on peak times, raises our service expectations, where any delay could breed feelings of dissatisfaction. However, subsidies reclassify this consumption into a “discount/promotion” account. We're inherently more forgiving toward discounted items—similar to shopping at an outlet, where we don’t expect the same level of new merchandise and service as we would from a flagship store.

Furthermore, the element of surprise brought by subsidies provides an emotional buffer during the waiting period. Enjoying a discount stimulates dopamine release in the brain, leading to a sense of having "gained" something. This initial positive emotion serves as a cushion, diminishing any frustration during the subsequent wait. You are more likely to think, “Although the wait is longer, it’s so cheap—it’s worth it.” This feeling of "worth" is the key pillar of tolerance.

03. Alibaba and JD.com Exhibit Greater Determination in Food Delivery Beyond subsidies, Alibaba and JD.com are also demonstrating stronger capabilities and intentions in the food delivery space compared to past competitors.

For Alibaba, its e-commerce foundation has faced intense challenges from rivals like Pinduoduo and Douyin in recent years, leading to a gradual erosion of market share. By integrating Ele.me’s instant delivery capabilities with Taobao's flash purchases, Alibaba intends to achieve comprehensive coverage from distant e-commerce to local retail, thereby restoring its e-commerce fundamentals.

JD.com aims to use food delivery as a conduit to increase daily active users on its platform, driving e-commerce, instant retail, hospitality, and other operations into a closed loop. JD founder Liu Qiangdong has publicly criticized the company for its lack of innovation, growth, and progress over the past five years, and its entry into food delivery marks a significant step in seeking new growth.

Thus, for both Alibaba and JD.com, the focus isn't primarily on the food delivery business itself, but rather on the "people" placing the orders. Attracting users who order food delivery frequently to stimulate less frequent e-commerce purchases is the true reason behind their willingness to invest heavily in the market.

04. Conclusion: Meituan Faces Pressure, Yet the Core Remains Intact In summary, despite facing multiple challenges, Meituan's core business remains stable; Alibaba and JD.com, however, each have their strategic considerations and execution difficulties.

For instance, Alibaba's short-term goal is to accelerate user conversion, while its long-term aim is to enhance overall activity and user scale on Taobao. Meanwhile, Alibaba encounters challenges in instant retail tied to organizational inertia and the efficiency of capital deployment following diversification. It remains uncertain whether users will stick around once subsidies cease.

For JD.com, its longstanding asset-heavy operating model limits its financial flexibility during the subsidy war. Additionally, verifying whether the strategy of leveraging high-frequency food delivery for low-frequency e-commerce performance will yield tangible results will take time. After all, the fundamental success of Meituan's strategy lies in the strong correlation of its business—“instant gratification.” The closer a business segment is to “instant gratification,” the higher the conversion rate from food delivery traffic. When the effort-output ratio isn't favorable, Alibaba and JD.com's interest may wane significantly.