A Meituan delivery man in yellow goes on his rounds in Shanghai, China, on April 21, 2021. Ng Han Guan/AP Photo
The second quarter financial reports of China’s three major food delivery platforms have been released, showing a significant drop in profits.
Although the companies say the hit to their profits is the result of their fierce price competition to attract customers, analysts say a deteriorating business environment and structural problems in China’s planned economy are the root cause, as many Chinese people are reducing their discretionary spending amid a sluggish economy.
