China’s 3 Food Delivery Giants Report Huge Drop in Profits in 2nd Quarter

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.