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MEITUAN-W: Industry Subsidy Competition Gradually Returns to Rationality; Notable UE Improvement Anticipated in 2Q26
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As overall industry subsidy competition gradually returns to rationality, peer competition is shifting back to the fundamentals of business, namely competition in operational efficiency and user experience, MEITUAN-W (03690.HK) Chairman and CEO Wang Xing remarked. With the guidance of relevant regulators, this trend is expected to further strengthen. Such a transition is more conducive to leveraging MEITUAN-W’s advantages, Wang opined. The company is confident in maintaining industry-leading operational efficiency, which will provide solid support for its long-term competitiveness. The company believes that the long-term unit economics (UE) of its food delivery business will return to reasonable levels progressively. Wang noted that if industry competition remains at the current rational level, supported by favorable seasonal factors, UE in 2Q26 is forecast to improve notably compared with 1Q26. The group will continue to closely monitor market changes and prudently adjust its operating strategies. At this juncture, the company’s focus remains on maintaining market leadership while incessantly enhancing operational efficiency, not only improving its own efficiency but also helping merchants on the MEITUAN-W platform enhance their operating efficiency. However, he said that the degree of improvement in the UE model in 2H26 will still depend to some extent on changes in the competitive environment. Compared with 2Q26, unit delivery costs per order in 3Q26 and 4Q26 are typically evidently higher. AASTOCKS Financial News |
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