Jufu Rui: Competition Intensifies in Summer, Meituan's Q3 Spending May Reach Peak

Analysts at Jefferies pointed out in their research report that due to the typically fierce competition in the summer food delivery industry, Meituan's expenditure in the third quarter may reach its peak. The analysts forecast that Meituan's revenue in the second quarter will increase by 13% year-on-year, and the volume of instant delivery orders will increase by 12% year-on-year. As for the core local business sector, Jefferies predicts that revenue in this sector will grow by 12% in 2025, but operating profit may decline by about 45%. Analysts believe that with strong execution and large-scale investment in 2025, Meituan is expected to maintain its leading position in the instant delivery industry. The report also added that the total incremental investment of Meituan, Ele.me, and JD.com in 2025 may exceed 100 billion yuan.