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Bloomberg
China’s largest food-delivery site Meituan has hit back against allegations that it charged onerous commissions to restaurants during the Covid-19 outbreak, underscoring the delicate balance the company must strike to get its business back on track.
Responding to complaints from a restaurant association in the southern province of Guangdong, Meituan said its average profit per delivery order was less than 0.2 yuan ($0.03) in the fourth quarter, accounting for just 2% of its revenue. After launch, its takeout service lost money
for five years before breaking even in 2019, the statement added. “We need to invest most of our income to help merchants develop professional delivery services, acquire orders, and improve digital infrastructure,†Puzhong Wang, senior vice president who oversees the company’s food delivery business, said in a statement.
The catering-industry body said it had received complaints from hundreds of restaurants criticising Meituan’s business practices.