Latest news with #freepromotions
Yahoo
09-08-2025
- Business
- Yahoo
Sip happens: China's delivery giants stir up a free drinks frenzy in no-holds-barred price war
SHANGHAI, Aug 9 — China's food delivery market is witnessing a fierce battle as Alibaba and Meituan launch competing promotions offering free drinks to attract customers, according to the South China Morning Post. The move has led to a surge in orders, affecting delivery workers and merchants across the country. Delivery rider Xie Yu, who has worked with both Alibaba's and Meituan, experienced a dramatic spike in orders last week. 'This is one of the craziest days I've experienced since I became a rider,' Xie, 39, told the South China Morning Post. On one day, he handled nearly 100 orders — double his usual average. Alibaba kicked off the promotion with daily vouchers worth 18.80 yuan (about RM11), quickly escalating to giving away one million free milk teas each day. Meituan responded with a similar campaign offering one million free cups of milk tea over a week. Both companies themed their offers as 'the first cup of milk tea in autumn,' a popular seasonal meme in China tied to the start of autumn, the Hong Kong-based newspaper said. a newer player in food delivery, joined with discounts focused on fried chicken, branding their promotion as 'the first bite of fried chicken in autumn,' with prices starting at 1.68 yuan per order, according to the same report. These free drinks campaigns are an extension of a larger price war as China's delivery platforms battle for market share by offering heavy subsidies to attract users. For delivery workers like Xie, the promotions have created more work but also more income. He said the price war 'brought more opportunities than challenges,' earning him an additional 2,000 yuan in July compared to last year. But merchants face mixed results. Jack Liang, who works at a milk tea shop in southern China, told the South China Morning Post that orders doubled during the campaign but his earnings increased only 'marginally,' and the busy pace left little room for breaks. Chinese regulators have taken notice of the intense competition. The South China Morning Post reported that China's State Administration for Market Regulation summoned Alibaba, Meituan, and in July to urge 'rational' competition. Though the companies pledged to reduce subsidies starting August 1, analysts say promotions have continued, with the report noting that 'the pace of marketing has not truly slowed down.' Meituan leads the market with peak daily orders exceeding 150 million, compared to Alibaba's 90 million and 25 million, according to company data cited by the South China Morning Post. Estimates suggest Meituan employs about one million delivery riders, double Alibaba's 500,000 and far more than 150,000. Industry experts forecast the sector will reach revenues of 1 trillion yuan this year, with platforms expected to 'hit profits in the short term,' the South China Morning Post reports. JPMorgan analysts predict competition will peak by the third quarter of 2025 due to financial and regulatory pressures.
Malay Mail
09-08-2025
- Business
- Malay Mail
Sip happens: China's delivery giants stir up a free drinks frenzy in no-holds-barred price war
SHANGHAI, Aug 9 — China's food delivery market is witnessing a fierce battle as Alibaba and Meituan launch competing promotions offering free drinks to attract customers, according to the South China Morning Post. The move has led to a surge in orders, affecting delivery workers and merchants across the country. Delivery rider Xie Yu, who has worked with both Alibaba's and Meituan, experienced a dramatic spike in orders last week. 'This is one of the craziest days I've experienced since I became a rider,' Xie, 39, told the South China Morning Post. On one day, he handled nearly 100 orders — double his usual average. Alibaba kicked off the promotion with daily vouchers worth 18.80 yuan (about RM11), quickly escalating to giving away one million free milk teas each day. Meituan responded with a similar campaign offering one million free cups of milk tea over a week. Both companies themed their offers as 'the first cup of milk tea in autumn,' a popular seasonal meme in China tied to the start of autumn, the Hong Kong-based newspaper said. a newer player in food delivery, joined with discounts focused on fried chicken, branding their promotion as 'the first bite of fried chicken in autumn,' with prices starting at 1.68 yuan per order, according to the same report. These free drinks campaigns are an extension of a larger price war as China's delivery platforms battle for market share by offering heavy subsidies to attract users. For delivery workers like Xie, the promotions have created more work but also more income. He said the price war 'brought more opportunities than challenges,' earning him an additional 2,000 yuan in July compared to last year. But merchants face mixed results. Jack Liang, who works at a milk tea shop in southern China, told the South China Morning Post that orders doubled during the campaign but his earnings increased only 'marginally,' and the busy pace left little room for breaks. Chinese regulators have taken notice of the intense competition. The South China Morning Post reported that China's State Administration for Market Regulation summoned Alibaba, Meituan, and in July to urge 'rational' competition. Though the companies pledged to reduce subsidies starting August 1, analysts say promotions have continued, with the report noting that 'the pace of marketing has not truly slowed down.' Meituan leads the market with peak daily orders exceeding 150 million, compared to Alibaba's 90 million and 25 million, according to company data cited by the South China Morning Post. Estimates suggest Meituan employs about one million delivery riders, double Alibaba's 500,000 and far more than 150,000. Industry experts forecast the sector will reach revenues of 1 trillion yuan this year, with platforms expected to 'hit profits in the short term,' the South China Morning Post reports. JPMorgan analysts predict competition will peak by the third quarter of 2025 due to financial and regulatory pressures.
