Chinese food delivery leader Meituan posted a second quarterly loss in a row and fell just shy of revenue growth estimates on Thursday after a year of bruising, subsidy-fuelled competition in China’s one-hour delivery space.

Meituan has seen its revenue growth and profits pressured for several quarters since e-commerce giants Alibaba-owned Taobao and JD launched new ‘instant retail’ platforms in early 2025.

Instant retail or quick commerce refers to online purchases – often of food, bubble tea and daily use items – delivered within 60 minutes.

In good news, the early months of 2026 have brought signs the instant retail price war – which has been criticised by Chinese regulators as a “race to the bottom” – might be abating.

Meituan’s revenue for the quarter ended December 31 reached 92.1 billion yuan (US$13.3 billion), a 4.1 per cent rise from a year ago, compared with 92.2 billion yuan expected by analysts.

Its adjusted net loss narrowed to 15.1 billion yuan from 16 billion yuan in the third quarter. A year earlier, Meituan posted a profit of 9.8 billion yuan.

On a post-earnings call with analysts, chief executive Wang Xing said the regulatory guidance is “already quite clear” regarding the instant retail war.

“The authorities are firmly against the so-called ‘neijuan’ competition and want to foster a healthy and orderly market,” Wang said. Neijuan, or involution, means people or companies are forced into ever harder competition that brings little benefit.

Earlier this week, Meituan shares jumped 14 per cent after a state media editorial urging an end to China’s food delivery price wars was republished by Chinese regulators, which was interpreted by industry watchers as an official endorsement.

• Reporting by Casey Hall in Shanghai; Sophie Yu in Beijing; Editing by Louise Heavens, of Reuters.