Meituan CEO Wang Xing: Firmly against involution, aim to improve user experience, enhance supply

Meituan CEO Wang Xing: Firmly against involution, aim to improve user experience, enhance supply

Meituan, the leading on-demand delivery service provider in China, has been grappling with intense competition in the food delivery sector. The company's CEO, Wang Xing, has been vocal about his strategy to improve user experience and enhance supply, rather than succumbing to excessive price wars and involution. This approach is evident in Meituan's recent financial performance and strategic investments.

In the second quarter of 2025, Meituan's operating margins in its Core Local Commerce (CLC) segment fell to 5.7%, a significant decline from the previous year. This downturn was driven by aggressive subsidies from competitors like JD.com and Alibaba's Ele.me, which sought to challenge Meituan's dominant market share [2]. Despite this, Wang Xing has maintained that the company's strategy is to prioritize market share over short-term profits, stating, "We're willing to bleed for the long-term" to maintain its leadership position [2].

Meituan's response to the price war has been multifaceted. The company has invested heavily in AI and logistics to enhance efficiency and reduce costs. These investments have led to a 20.96% reduction in delivery times and a 23.77% decrease in courier travel distances, resulting in annual savings of USD230 million [2]. By leveraging AI for route optimization, Meituan has created a competitive moat that is difficult for rivals to replicate.

Additionally, Meituan is expanding its operations internationally through its Keeta platform in Saudi Arabia and Hong Kong. This diversification of revenue streams further strengthens the company's financial resilience and positions it for long-term sector leadership [2].

Wang Xing's focus on improving user experience and enhancing supply is reflected in Meituan's strategic investments. By prioritizing market share and leveraging AI-driven efficiency, Meituan aims to create a sustainable and competitive advantage in the hyper-competitive food delivery market. This approach underscores the company's commitment to innovation and long-term growth, rather than short-term gains.

References:
[1] https://www.scmp.com/topics/meituan
[2] https://www.ainvest.com/news/meituan-margin-squeeze-food-delivery-price-war-test-strategic-resilience-long-term-2508/