Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
Zunyi Catering Association Calls for End to 'Involutionary' Delivery Subsidies as Local Restaurants Locked in Vicious Cycle
Recommend 22 Positive 30 Negative 16 |
||||
|
||||
|
The Catering Association of Honghuagang District in Zunyi, Guizhou Province, has issued a public letter regarding the ongoing delivery platform wars. The letter pointed to the extreme subsidy tactics of MEITUAN-W (03690.HK) and BABA-W (09988.HK)'s Taobao Instant Commerce (Ele.me), which has plunged many local restaurants into a vicious cycle where no participation means no traffic, but participation means price cuts and incurring losses. It highlighted that the unhealthy pricing below cost triggered by extreme subsidies campaigns in the battle over delivery market share has led to market chaos and a serious imbalance in the industry ecosystem. Three proposals were put forward by the letter: stop irrational subsidies and return to value-based competition; protect the legitimate rights and interests of merchants; and work together to build a sustainable development ecosystem. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
