The latest reports from J.P. Morgan show that, based on order volume, MEITUAN-W handles 71 million daily orders, capturing 50% of the market share, followed by Alibaba at 42%, and JD.com at 8%. Goldman Sachs predicts that in the long run, the market share for food delivery and instant e-commerce will stabilize at a 5:4:1 ratio among MEITUAN-W, Alibaba, and JD.com.

With the recent release of Q3 earnings reports from Alibaba, JD.com, and MEITUAN-W, the financial toll of this year's fierce food delivery battle has come to light.

MEITUAN-W's Q3 report revealed a loss of RMB 14.1 billion in its core local commerce segment, which includes food delivery—a stark contrast to the RMB 14.5 billion profit recorded in the same period last year. The report attributed the loss to "irrational competition in the food delivery industry, prompting increased direct subsidies for the catering sector." Overall, MEITUAN-W posted a total loss of RMB 16 billion in Q3, largely due to the food delivery war.

JD.com, the first to report Q3 results, disclosed a staggering RMB 15.7 billion loss in its new business segment, which includes food delivery. Over just nine months, cumulative losses in this segment reached RMB 31.8 billion, with the majority funneled into food delivery.

Alibaba's Q3 earnings showed operating profit related to the food delivery battle at RMB 5.37 billion, down 85% from RMB 35.25 billion year-over-year. Overall net profit fell 53% to RMB 20.61 billion. The report hinted at the impact of investments in "instant retail, user experience, and technology," partially offset by growth in its China e-commerce and cloud businesses.

If calculated under the logic of "lost profits equal losses," the three-month food delivery war from July to September cost MEITUAN-W RMB 14.5 billion in lost profits plus an additional RMB 14.1 billion in new losses, Alibaba RMB 30 billion in lost profits, and JD.com RMB 15.7 billion in new losses—totaling over RMB 70 billion.

The cash-burning competition has driven significant user growth. MEITUAN-W reported over 800 million annual transacting users, with daily active users up 20% year-over-year. JD.com surpassed 700 million annual active users in October. Alibaba noted that instant retail boosted Taobao's monthly active users, with 3,500 Tmall brands integrating offline stores into its instant retail network.

Market share data from J.P. Morgan shows MEITUAN-W leading with 50%, followed by Alibaba at 42% and JD.com at 8%. Goldman Sachs projects a long-term 5:4:1 split among the three.

The battle began in February 2025 when JD.com entered the RMB 1.2 trillion food delivery market, challenging MEITUAN-W and Alibaba's Ele.me. By April, "RMB 10 billion subsidies" reignited the fight, peaking in July with free milk tea and coffee promotions. Daily orders surged to 250 million, up from 100 million pre-war.

Despite fierce competition, MEITUAN-W defended its premium market share, holding two-thirds of orders above RMB 15 and 70% above RMB 30. CEO Wang Xing affirmed confidence in maintaining its position in instant retail.

Regulatory interventions and financial pressures forced a shift from scale to efficiency by September. Alibaba focused on Taobao Quick Purchase and Hema synergies, JD.com on self-operated kitchens, and MEITUAN-W on local services.

Beverage brands like Luckin Coffee emerged as winners, with store counts doubling and monthly users hitting record highs. However, profits remained flat due to soaring delivery costs. Small businesses also benefited, with some seeing 50% traffic growth after joining delivery platforms.

Delivery riders became the backbone of the war, with platforms improving benefits to attract workers. Active riders surged to 14 million by July, up 140% from January. However, many temporary riders exited as subsidies waned, flooding the second-hand e-bike market.

Outside the fray, ByteDance's Douyin and PDD quietly thrived. Douyin's GMV grew over 30% year-to-date, while PDD stayed focused on its core value proposition.

As the year ends, platforms signal a cooling-off. Alibaba plans to cut subsidies, JD.com aims for a healthier financial model, and MEITUAN-W will prioritize user experience. The war may have no clear winner, but it has reshaped China's instant commerce landscape, embedding "instant gratification" into consumer habits and blurring platform boundaries.