Meituan Returns to Profit as China Retail Price War Eases

Meituan returned to profitability for the quarter ended June 30, reporting an adjusted net profit of 2.16 billion yuan. This recovery follows a 4.97 billion yuan loss in the first quarter. Revenue for the period rose 14.4 percent year-on-year to 104.6 billion yuan, surpassing analyst expectations.

The financial turnaround comes after a period of aggressive competition in the instant retail sector. Since early 2025, Meituan faced significant pressure from JD.com and Alibaba's Taobao, both of which launched platforms to compete in the quick commerce market. This rivalry led to heavy subsidies for deliveries under 60 minutes.

The price war subsided in early 2026 after Chinese regulators criticized the trend as a "race to the bottom." Despite the return to profit, Meituan remained under regulatory scrutiny; in April, the market regulator fined Meituan and six other platforms a combined 3.6 billion yuan for food delivery safety violations.