Meituan Requires an Internal Overhaul

At Meituan’s annual shareholder meeting, the management’s script-reading communication style reflected an air of aloofness and bias. Previously, the company’s edge, built on extreme efficiency and successive victories, has fostered a self-satisfied mindset that now risks pushing Meituan into a Tacitus Trap.

Despite strong financial performance in full-year 2024 and the first quarter of 2025, with simultaneous increases in revenue and profit, Meituan’s recent shareholder meeting did not proceed as harmoniously as expected. According to media reports, the 2025 Annual General Meeting was held on June 9 at Meituan's Beijing headquarters, attended by CEO Wang Xing, Senior Vice Presidents Mu Rongjun and Chen Shaohui, and Vice President Xu Sijia.

However, this occasion—intended as an open forum for addressing key issues and discussing future prospects—left many shareholders disappointed due to the conduct of management.
During the Q&A session, Wang Xing, Mu Rongjun, and Chen Shaohui addressed shareholder questions regarding competition with JD.com, the development of the Flash Sale business,

technological planning, Keeta’s overseas expansion, and delivery rider social security. Yet throughout the session, including Wang Xing’s responses, executives were seen reading directly from scripts and offering no substantive new information. Since JD.com’s official entry into the food delivery business in February with a series of disruptive measures, Meituan has faced intense public scrutiny. At the same time, debates surrounding rider welfare have continued to grow, putting pressure on Meituan’s share price.

As JD.com's delivery business grows rapidly and Taobao Flash Sale gains momentum, Meituan’s core operations are facing unprecedented challenges. In such a context, Meituan, as the incumbent, needs internal unity. However, when shareholder confidence begins to falter and management lacks genuine willingness to engage, a drama of arrogance and prejudice inevitably unfolds.
Shareholder discontent largely stems from concern over the future of Meituan’s core delivery business and dissatisfaction with current internal management.

Meituan has long held a dominant position in food delivery. Although Alibaba entered the market via Ele.me and Douyin attempted to expand into home delivery, neither posed a serious threat. This leading position has been a key source of investor confidence over the years.

Since JD.com’s high-profile entrance into the market in February—offering zero commission for merchants, full social insurance for full-time riders, basic protection and incentives for part-timers, large-scale user subsidies, premium delivery positioning, and guaranteed efficiency—each measure directly targeted Meituan’s weaknesses. The later entry of Taobao Flash Sale has brought the competition to a boiling point.

As JD.com's delivery service rapidly expands, the once relatively stable structure—dominated by Meituan—appears to be shifting. If Meituan’s leadership in food delivery is lost, the company’s profitability will likely be challenged, directly impacting core shareholder interests.

Public concerns over rider welfare, merchant rights, and monopoly practices, coupled with uncertainty over business prospects, have led to a decline in Meituan’s stock price since March, further weakening investor confidence.

Internally, some shareholders criticized Meituan’s inadequate response to public opinion and its failure to protect its brand image. There were also concerns about the AB-share structure. One shareholder remarked after the meeting, “This kind of shareholding structure ignores the voices of small shareholders. We hope the company treats all shareholders fairly.” This episode further reveals a long-standing issue of arrogance within the company’s leadership.

According to a research report by CMB International Securities, Meituan held a 65% market share in food delivery in 2024, while Ele.me had 33%, with other platforms making up the remaining 2%. Such prolonged dominance may have created a cognitive bias within management, reducing their willingness to consider the views of smaller shareholders and frontline delivery riders.

Meituan’s top decision-making body, the S-team, comprises experienced leaders across various business segments. However, its strong focus on financial metrics and operational efficiency reflects an elite mindset, often neglecting the daily realities of frontline staff—particularly riders. This disconnect has long contributed to public discourse about issues like “algorithm-driven rider exploitation” and “inadequate social protection.”

While Meituan’s past dominance made these issues less urgent, the entry of strong competitors has offered riders new options. This growing divide between management decisions and grassroots needs may now threaten Meituan’s core business foundation.

On June 1, JD.com’s official WeChat account “JD Blackboard” reported that daily food delivery orders surpassed 25 million, with over 1.5 million quality restaurants onboard, and healthy growth in both volume and profit.

As JD.com advances rapidly, Meituan’s management sidesteps shareholder concerns with rehearsed remarks—making conflict inevitable. In 2023, Meituan had 7.45 million delivery riders on its platform. The sheer size of this group has elevated rider welfare from an internal matter to one of social responsibility. As a major enterprise, Meituan’s ability to unite management, shareholders, and frontline staff is critical in the face of fierce competition.

On one side, Liu Qiangdong delivers orders himself, hosts hotpot dinners for riders, and refers to them as “brothers.” On the other side, Meituan’s leadership remains in boardrooms, focused on efficiency and data—creating an image that has sparked widespread public discussion.

Beyond diminished shareholder confidence, Meituan’s stagnant stock price has also impacted staff morale. A shareholder noted in a post-meeting discussion that the weakened stock price has reduced the effectiveness of employee stock incentives, affecting overall motivation.

Among the large rider base, JD.com had already announced that beginning March 1, it would provide full social insurance for all full-time riders and accident and health coverage for part-timers—becoming the first platform to do so. JD.com had previously offered full social benefits to its logistics couriers for years.

By contrast, despite over a decade in the food delivery business, Meituan only followed suit after JD.com's announcement, stating it would begin providing social insurance for all full-time and stable part-time riders nationwide in Q2 this year. Both the timing and the pace suggest a reactive strategy.

As the saying goes, to address external threats, one must first ensure internal stability. Although Wang Xing declared that Meituan would “win the competition at all costs,” the long-term nature of food delivery competition is now industry consensus. Before reacting to competitors’ moves, Meituan should engage in internal reflection and listen more to its own people. After all, a healthy corporate ecosystem requires collective effort from all stakeholders. Facing external competition together is far better than being besieged from within and without.