The second quarter financial reports of China’s three major food delivery platforms have been released, showing a significant drop in profits.
Although the companies say the hit to their profits is the result of their fierce price competition to attract customers, analysts say a deteriorating business environment and structural problems in China’s planned economy are the root cause, as many Chinese people are reducing their discretionary spending amid a sluggish economy.
Meituan, the Chinese e-commerce giant that has dominated the domestic meal and food delivery market for years, reported an 89 percent drop in second-quarter net profit on Aug. 27, after another Chinese e-commerce titan, JD.com, reported a 50.8 percent net profit drop earlier in August….
China’s 3 Food Delivery Giants Report Huge Drop in Profits in 2nd Quarter
