China launches probe into food delivery price wars: report

The country’s regulators see excessive competition that can lead to minimised returns.

China’s State Council will investigate the competition amongst food delivery platforms to ensure fair and orderly competition and create a market with high quality and reasonable pricing, a report from Reuters said.

The platforms are operated by tech firms such as Meituan and Alibaba, and the investigation by the council’s market regulation aims to curb the price wars that have caused eroded profits and deflationary pressures for the economy, it added.

The report said that China's consumer prices ended 2025 at the same level as the year before and missed policymakers' goal of "around 2%,” despite a government campaign to curb overcapacity and stabilise prices.

Some issues in the food delivery sector, such as excessive subsidies and price wars, were seen to have intensified an "involution-style" competition, the report added, quoting the market regulator.

Involution or neijuan refers to excessive competition that often leads to minimised returns.

Delivery competition is fierce in China to the point where goods, food and beverages, and over-the-counter medicine, are typically delivered within the hour.

Reuters said that Meituan and Alibaba's delivery platforms both said that they welcomed the government investigation and assessment, and would fully cooperate.