Food de­liv­ery com­pe­ti­tion

China Daily - - COMMENT -

The meal de­liv­ery com­pe­ti­tion in Wuxi, Jiangsu prov­ince, has been curbed by the lo­cal in­dus­trial and com­mer­cial depart­ment af­ter it held a meet­ing with Didi Chux­ing, Meituan and Ele.me, call­ing for a halt to their be­hav­ior to snatch mar­ket share that was get­ting out of hand.

The East China city has the high­est num­ber of meal de­liv­er­ies in China, and the com­pe­ti­tion among de­liv­ery com­pa­nies heated up when Didi Chux­ing, the coun­try’s lead­ing ride-hail­ing provider, be­gan of­fer­ing a meal de­liv­ery ser­vice in the city on April 1, af­ter Meituan, a ma­jor meal de­liv­ery com­pany, launched a car-hail­ing ser­vice in Shang­hai.

Didi’s en­try into Wuxi’s meal de­liv­ery sec­tor sparked fierce com­pe­ti­tion.

To at­tract cus­tomers the food de­liv­ery plat­forms of­fered coupons or dis­counts to cus­tomers that in some cases could off­set the cost of a meal, lead­ing to some restau­rants hav­ing to can­cel or­ders be­cause they were too busy to han­dle all the or­ders they re­ceived.

Some restau­rants were forced to leave one food de­liv­ery plat­form if they reg­is­tered on an­other.

And cus­tomers in

Wuxi found that in the tus­sle, the qual­ity of the meals they or­dered suf­fered and their meals took longer to ar­rive.

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