Meituan Losses Deepen to $2.2 Billion Amid Fierce Delivery Price War

Meituan reported fourth-quarter revenue of 92.1 billion yuan ($12.7 billion), a 4.1% increase year-over-year.

The company posted an adjusted net loss of 15.1 billion yuan ($2.2 billion), marking its second consecutive quarterly loss.

This result missed analyst expectations of a 12.9 billion yuan loss and reversed a 9.8 billion yuan profit from the previous year.

Management attributed the deficit to an expensive price war in the instant commerce sector against Alibaba and JD.com.

Meituan increased spending on merchant subsidies and customer incentives to protect its market share.

The core local commerce segment recorded a 10 billion yuan operating loss as competition pressured margins.