China has initiated an investigation and assessment of the market competition in the country's food delivery platforms, today led by Meituan and Alibaba-owned Ele.me, where even options for foreigners such as Sherpas exist, the country's top market regulator announced this Friday.
The investigation was initiated by the office of the commission against monopoly and unfair competition, dependent on the State Council, in accordance with the country's anti-monopoly law, according to the State Administration for Market Regulation, whose data was accessed by the Argentine News Agency.
The assessment will include on-site inspections, in-person interviews, and questionnaires to gain a deep understanding of the competitive behavior of these platforms, and opinions will be sought from interested parties, including merchants, workers, and consumers, the official said.
It was noted that food delivery platforms must actively cooperate with the investigation and assessment, participate fairly in market competition, and contribute to the innovation and healthy development of the industry.
Competition
An official from the commission stated that while the food delivery platform service industry played a crucial role in stimulating consumption, expanding employment, and fostering innovation, significant problems have recently emerged in the sector, including excessive subsidies, price wars, and challenges in traffic flow control.
'These practices have squeezed the real economy, intensified involutionary competition within the sector, and provoked strong reactions from various sectors of society,' explained the official.
He added that the investigation aims to promote legal, regulatory-compliant, and fair competition within the food delivery platform industry and establish a market order characterized by quality-based pricing and healthy competition.
Global Boom
Food delivery apps have caught on like wildfire in modern society, as they solve the problem of lunch or dinner at home without needing a kitchen. They come in all kinds and instantly, mainly delivered by motorcycle or bicycle, and had their boom during the coronavirus pandemic.
The Foodie Radar 2025 published by Pedidos Ya, which surveyed more than 19 million users in 500 cities across 15 countries, revealed that delivery in Latin America revolves around hamburgers, chicken, and pizza, in that order, and showed that Paraguay is the country with the highest consumption in the region. However, in Argentina, the milanesa is the emblem of the local order.
