Today, the sharp declines of both JD.com and Meituan are undoubtedly due to JD.com's increasingly "high-profile" and "serious" approach to its delivery business, as well as the recent escalation of the "war of public opinion" between the two companies. This has led the market to take their competition's potential impacts seriously.

Although it is still unknown how large JD.com's delivery business can ultimately grow, how much market share it can take from Meituan, and how much it will drag down Meituan's average profit per order, it is too early to make judgments or predictions. However, the competition in the delivery business will be negative for both companies in the short term.

For the offensive JD.com, the massive subsidy investments during its business expansion phase and the resulting losses will weigh down the overall profits of the group. The defensive Meituan will also face the dilemma of whether to increase subsidies to counterattack, which will drag down profits in the short term, as well as the long-term question of how much market share it will lose.

According to recent news reports and research, JD.com's average daily order volume for delivery has surpassed 5 million, but due to high subsidies, the average loss per order could be over 10 yuan (which may not be accurate). If this is true, the losses in the delivery business over a month could reach over 1 billion yuan, significantly impacting profitability.

Although it is still less than 10% of Meituan's order volume, referencing the situation of Ele.me, if JD.com's delivery can subsequently reach an average daily volume of around 10 to 20 million orders, it is hopeful that it will no longer require substantial external funding support and can enter a sustainable operating state.

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