The food delivery subsidy war between Chinese internet giants Meituan and Alibaba suddenly escalated over the weekend, with both offering massive high-value coupons, and some deliveries even available for 'zero yuan purchases.'
According to reports from The Paper, Yicai, and others, in early July, Alibaba’s Flash Delivery announced a subsidy of 50 billion yuan (about 8.8 billion Singapore dollars) to challenge Meituan, with market rumors that Taobao Flash Delivery would designate Saturday (July 5) as 'Order Day,' targeting a peak of 90 to 100 million orders.
In response, Meituan suddenly upgraded its food delivery subsidies on Saturday. Many internet users reported that on Saturday, Meituan began distributing numerous 'zero yuan purchase' red envelope coupons for food delivery, which could be used to get milk tea, hamburgers and more for free. To have them delivered, users needed to meet a minimum order amount and pay for delivery, but for in-store pickup, it was completely free.
Due to the surge in order volume surpassing historical peaks, the Meituan app experienced brief service disruptions.
The generous discounts led to a nationwide surge in food delivery orders. On Saturday night, Meituan was the first to announce that its instant retail daily order volume had exceeded the 120 million order mark, in a clear tit-for-tat with Taobao Flash Delivery.
A milk tea shop employee remarked: “We sold out half a year’s stock in just one day.”
According to reports from The Paper, Yicai, and others, in early July, Alibaba’s Flash Delivery announced a subsidy of 50 billion yuan (about 8.8 billion Singapore dollars) to challenge Meituan, with market rumors that Taobao Flash Delivery would designate Saturday (July 5) as 'Order Day,' targeting a peak of 90 to 100 million orders.
In response, Meituan suddenly upgraded its food delivery subsidies on Saturday. Many internet users reported that on Saturday, Meituan began distributing numerous 'zero yuan purchase' red envelope coupons for food delivery, which could be used to get milk tea, hamburgers and more for free. To have them delivered, users needed to meet a minimum order amount and pay for delivery, but for in-store pickup, it was completely free.
Due to the surge in order volume surpassing historical peaks, the Meituan app experienced brief service disruptions.
The generous discounts led to a nationwide surge in food delivery orders. On Saturday night, Meituan was the first to announce that its instant retail daily order volume had exceeded the 120 million order mark, in a clear tit-for-tat with Taobao Flash Delivery.
A milk tea shop employee remarked: “We sold out half a year’s stock in just one day.”