Meituan posts third straight quarterly loss amid local services rivalry

Chinese food delivery and local services giant Meituan reported its third consecutive quarterly loss, with revenue rising 5.6% year-on-year to 91 billion yuan ($13.45 billion) in the first quarter. The adjusted net loss of 4.97 billion yuan narrowed from the previous quarter's 15 billion yuan loss, partly due to reduced food delivery subsidies and improved operating efficiency. While competition in food delivery appears to be easing, Meituan faces growing challenges in its in-store services business, particularly from ByteDance's Douyin, which is expanding into local services—a market estimated by iiMedia at 35.3 trillion yuan last year. A Citic Securities research note noted that competitive pressure in in-store services is likely to remain intense.