Chinese technology giants Alibaba Group, Meituan and JD.com have announced commitments to reduce “disordered competition” and end the pricing war in the food delivery sector, which has been pressuring profit margins and generating warnings of regulators.
In recent months, the three companies had been offering aggressive discounts to attract users, especially after JD.com’s entry in this market at the beginning of the year.
On Friday, (1st), MEITUAN has stated that it will not force traders to grant consumer discounts, while JD.com has promised to avoid excessive offers, such as vouchers that allow you to get items free of charge.
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Already to him.me, controlled by Alibaba, said that he will seek to protect the profit margins of the partners.
The commitments were announced after the state management of the China market regulation to summon companies in July and to urge them to standardize their promotions and compete more rationally.
