$MEITUAN(03690.HK)$Meituan-W hk03690$ Meituan is projected to lose about 24 billion in 2025, and its losses in the first quarter of 2026 are expected to increase further... It's worth noting that its profit in 2024 was over 35 billion. How did such a profitable situation turn into such heavy losses?

To put it bluntly: Meituan picked a fight and ended up getting ganged up on.

1. The instigator is asking for it: Meituan went for JD.com's core

They were supposed to mind their own business, but Meituan launched 'Xiaoxiang Supermarket' + 3C digital express delivery, directly poking at the two most fundamental core businesses of JD.com.

Could JD.com's boss tolerate that? He directly employed the 'besiege Wei to rescue Zhao' strategy, poaching delivery riders with high salaries and pouring money into food delivery subsidies, striking right at Meituan's vital point.

Meituan barely held off JD.com, only to find it had let the wolf in through the door.

2. Alibaba enters the fray: 50 billion in subsidies, attacking Meituan's home turf

Alibaba saw that Meituan's food delivery moat wasn't so solid after all.

Led by Jiang Fan, Taobao's flash delivery + Ele.me joined forces, throwing 50 billion in subsidies to grab market share, aiming not only at food delivery but also turning Taobao into a daily active super app.

3. Douyin delivers the final blow: Local services with a dimensional advantage

Douyin's group buying, video-to-store, and coupon distribution all-in-one service is more attractive to customers than Meituan's traditional model, causing a massive diversion of local service traffic.

JD.com + Alibaba + Douyin, three giants are ganging up on Meituan, all targeting its most profitable core businesses.

Meituan has no choice but to frantically burn cash on subsidies to protect its market share. That's how this 24 billion loss was burned.

4. The most painful part: Others burn money and their valuations rise, while Meituan burns money and crashes

Alibaba burns money, but it has chips + the Qianwen large model as a second growth curve. The market values it as a tech company.

What about Meituan? Besides local services and food delivery, it has no grand, expansive business ventures.

Before the holiday, Alibaba's Qianwen offered 0.01 yuan milk tea, and on Valentine's Day, it offered 30 yuan hourly hotel rooms. AI + local services is right at its doorstep, and Meituan is almost left with nothing.

ByteDance even officially announced it's working on chips. The giants are all moving upward, while only Meituan is being hunted within the existing market.

Wang Xing's head is probably buzzing right now. There really isn't much time left for Meituan to counterattack.