During the company's first-quarter 2026 earnings call, Meituan's Chief Financial Officer, Chen Shaohui, addressed analyst questions regarding competition from platforms like Douyin in the local services sector.

Chen stated that the on-demand services business relies on offline fulfillment capabilities and consumer trust, noting that traffic alone cannot be directly converted into actual transactions. He emphasized that Meituan has built a core competitive advantage in this area that cannot be replicated simply through traffic.

Chen Shaohui added that major platforms still need to continuously create differentiation across specific categories, merchant types, and usage scenarios. Currently, Meituan's on-demand services revenue maintains steady growth, with its core categories continuing to lead the industry. The company is also expanding into new service retail segments and further penetrating lower-tier markets.

This year, the company will focus on two key initiatives: consolidating its competitive advantage in core categories and building more comprehensive digital infrastructure for local life merchants. As industry subsidies gradually return to normal levels, the value Meituan provides to merchants will play an increasingly important role in their daily operations.

In the short term, the profit margin for the on-demand services business is expected to remain stable, with room for recovery in the long run.