China Internet Sector "Local services monthly: Early signs of easing..."

研报英文原文证据摘录

China Internet Sector "Local services monthly: Early signs of easing..."

Global Research

13 July 2026ab

China Internet Sector Equities

ChinaLocal services monthly: Early signs of easing in-

store competition Internet Services

Kenneth Fong

Analyst

kenneth-kc.fong@ubs.com

Quick commerce: Continued moderating with optimizing subsidies +852-3712 3890

We present key trends with the latest data as of 5 July. Growth: Our channel checks Sardonna Fong

with third-party agencies indicate average daily food delivery volume across Meituan, Analyst

Taobao and JD +5% MoM at c.126mn in June due to 618 promotions, while subsidies sardonna.fong@ubs.com

continued to ease. Competition: We use sequential share of rider time spent as a proxy +852-3712 3042

for changes in each platform's order volume share (Figure 3VolumemarketshareMoM%change–totalrideraptimespentasproxy). In early July, Meituan Wei Xiong

regained share after a slight decline in June. Our order volume channel checks suggest Analyst

daily volume at c68m/51m/8m for Meituan/Taobao/JD (or 53%/41%/6% share). Unit S1460518100005

economics (UE): On food delivery, our channel checks indicate UE remained steady in wei.xiong@ubs.com

June despite 618 promotions. Experts noted continued AOV recovery amid normalizing +86-21-3866 8883

subsidies, further supported by SAMR's draft guidance on the sector on 17 June

(effective since 1 July, from our checks), which focuses on monitoring and regulating

large-scale subsidy campaigns, below-cost promotions, merchant subsidy burden,

assessment of the competitive landscape after promotions, and food safety. As

competition continues to shift toward the non-food segment, our channel checks

suggest UE is recovering at a more measured pace vs food delivery, with Meituan