China's Meituan warns of 'irrational' food delivery competition
HONG KONG -- Chinese food delivery giant Meituan is doubling down on overseas expansion as it warns that "irrational and unhealthy" competition in the domestic sector will lead to a significant decrease in operating profit for the current quarter.
The warning came from Wang Xing, co-founder and chief executive officer of Meituan, in an earnings call on Monday evening. While Wang did not mention JD.com by name, the e-commerce major has recently entered the food delivery sector and sparked a price war with its subsidy-fueled campaign to win over customers, merchants and couriers.
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