China tech crackdown: Meituan, Ele.me, other on-demand delivery providers face dim prospects amid Beijing’s scrutiny, analysts say

Feb 21, 2022 | INVESTING

Chinese on-demand delivery services providers, led by Meituan and Ele.me, face gloomy prospects after Beijing directed these internet platforms to cut the fees they charge restaurants, which has put a cap on their profit margins, according to analysts.“Since food delivery accounts for a big proportion of these platforms’ revenue, the reduced commission fee would have an impact [on their revenue],” said Zhang Yi, chief executive of market research firm iiMedia.Beijing-based Meituan, operator of…

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