Meituan, Alibaba burn 16b yuan in weekend food delivery subsidy battle

China’s food delivery giants Meituan (3690) and Alibaba’s (9988) Taobao Fast Delivery cost a combined 16 billion yuan (HK$17.48 billion) in single-day subsidies amid a ramping-up price war with large-scale “zero-yuan purchase” campaigns over the past two Saturdays, according to Chinese media.

The “Super Saturday” promotions led to surging order volumes. Meituan reportedly spent 3 billion to 4 billion yuan on subsidies last Saturday, while Taobao Fast Delivery’s subsidy exceeded 12 billion yuan.

STAFF REPORTER