China’s 3 Food Delivery Giants Report Huge Drop in Profits in 2nd Quarter

Analysts say it reflects the distorted economic development and deteriorating business environment in China.
China’s 3 Food Delivery Giants Report Huge Drop in Profits in 2nd Quarter
A Meituan delivery man in yellow goes on his rounds in Shanghai, China, on April 21, 2021. Ng Han Guan/AP Photo
|Updated:
0:00

The second quarter financial reports of China’s three major food delivery platforms have been released, showing a significant drop in profits.

Although the companies say the hit to their profits is the result of their fierce price competition to attract customers, analysts say a deteriorating business environment and structural problems in China’s planned economy are the root cause, as many Chinese people are reducing their discretionary spending amid a sluggish economy.

Alex Wu
Alex Wu
Author
Alex Wu is a U.S.-based writer for The Epoch Times focusing on Chinese society, Chinese culture, human rights, and international relations.