A Meituan delivery man in yellow goes on his rounds in Shanghai, China, on April 21, 2021. Ng Han Guan/AP Photo
The second quarter financial reports of China’s three major food delivery platforms have been released, showing a significant drop in profits.
While 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, with many Chinese people reducing their discretionary spending, such as dining out, amid a sluggish economy.
