China’s State Administration for Market Regulation (SAMR) summoned Meituan, Ele.me, and JD.com for talks on July 18 in light of the current food delivery subsidy war. The authorities urged China’s major platforms to comply with e-commerce, anti-unfair competition, and food safety laws, and foster a healthy ecosystem for consumers, merchants, riders, and platforms. The regulatory action follows weeks of escalating subsidies. On July 2, Taobao Flash Sale launched a RMB 50 billion ($6.97 billion) campaign with coupons and direct subsidies on offer to sellers and logistics agents. Dubbed “Super Saturday,” the campaign rolled out weekly RMB 188 food delivery coupons via Ele.me. Meituan responded with a “match Alibaba” approach, triggering record volumes – 1.2 billion orders on July 5, and 1.5 billion on July 12. Ele.me and Taobao Flash Sale reported over 80 million orders on both Saturdays. It marks the second government intervention since May amid intensifying platform rivalry. [Caixin, in Chinese]
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