Alibaba Group (BABA), JD.com (JD), and Meituan pledged on Friday to end price-based rivalry in China's $80 billion food delivery market, Bloomberg reported late Thursday, citing the companies.
The companies have been undercutting each other by offering a variety of discounts and subsidies, with government agencies stepping in to calm things down, the report said.
Alibaba's Ele.me said it will protect merchant margins and avoid irrational promotions, while Meituan said it would not force businesses to take part in subsidies, Bloomberg reported.
Alibaba, JD, and Meituan did not immediately respond to MT Newswires' request for comment.
Shares of Alibaba and JD.com were down 1.9% and 0.2%, respectively, in recent Friday premarket activity.
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