China Food Delivery: Meituan vs Ele.me Market Battle
China's food delivery market is a fierce two-horse race between Meituan (美团) and Ele.me (饿了么), collectively serving over 700 million users and processing billions of orders annually. Meituan, backed by Tencent, controls approximately 67% of the market, while Ele.me, acquired by Alibaba in 2018, holds about 28%. The market reached RMB 1.2 trillion (approximately $165 billion) in GMV in 2024. Beyond food, both platforms have expanded into grocery delivery, pharmacy, local services, and instant retail, competing to become the dominant super-app for daily life services.
TL;DR
China's food delivery market is worth RMB 1.2T, dominated by Meituan (67%) and Ele.me (28%). Together they serve 700M+ users processing billions of orders, with both expanding into grocery, pharmacy, and instant retail.
Key Insights
Market Size
China's food delivery market reached RMB 1.2 trillion in gross merchandise value in 2024, making it the world's largest food delivery market by far. Growth has moderated from pandemic peaks but continues at 15-20% annually driven by tier 2-3 city penetration, increased order frequency, and expansion into new categories including groceries, pharmacy, and convenience items. Average order value has stabilized at approximately RMB 40-50.
Meituan Dominance
Meituan has established a dominant market position through superior logistics infrastructure, diversified services, and strong integration with WeChat. The company operates over 7 million daily active merchants, supported by a delivery fleet of approximately 7 million riders. Meituan's annual revenue exceeded RMB 280 billion in 2024, with food delivery contributing the largest share. The company has achieved consistent profitability through economies of scale and diversification into hotel booking, movie tickets, and bike sharing.
Ele.me's Alibaba Integration
Ele.me, acquired by Alibaba for $9 billion in 2018, leverages Alibaba's e-commerce ecosystem including Taobao, Alipay, and Cainiao logistics. Despite heavy investment, Ele.me has struggled to close the gap with Meituan. In 2024, Alibaba restructured Ele.me under its local life services unit and continues to invest in technology and subsidies. Ele.me's strengths include deeper integration with Alibaba's consumer ecosystem and stronger presence in office lunch delivery in major cities.
Delivery Fleet
China's food delivery industry relies on over 10 million registered delivery riders. Meituan alone has approximately 7 million riders who complete over 60 million daily orders. The gig economy model has created massive employment but also raised concerns about rider welfare, working conditions, and social security. New regulations require platforms to provide basic insurance coverage and establish rider councils. Rider income averages RMB 5,000-8,000 per month in major cities.
Technology & AI
Both platforms deploy sophisticated AI systems for order matching, route optimization, delivery time prediction, and demand forecasting. Meituan's automated dispatch system processes millions of decisions per second, assigning orders to optimal riders based on location, capacity, and predicted delivery time. Ele.me leverages Alibaba Cloud and machine learning for similar optimization. Both are investing in autonomous delivery robots and drones, with Meituan conducting drone delivery trials in Shenzhen and Ele.me testing robot delivery in Hangzhou.
Instant Retail Expansion
Both platforms have expanded aggressively into instant retail, delivering groceries, pharmacy items, and convenience goods within 30 minutes. Meituan's Instashopping (美团闪购) and Ele.me's instant delivery services now account for a growing share of total orders. This expansion transforms the platforms from food-only to comprehensive daily necessities providers, competing directly with traditional supermarkets and convenience stores. The instant retail market in China reached RMB 500 billion in 2024.
Side-by-Side Comparison
| Feature | Meituan | Ele.me |
|---|---|---|
| Market Share | ~67% | ~28% |
| Parent Company | Listed (3690.HK) | Alibaba Group |
| Key Backer | Tencent | Alibaba |
| Annual Revenue (2024) | ~RMB 280B | ~RMB 80B (est.) |
| Daily Orders | ~80M+ | ~30M+ (est.) |
| Delivery Fleet | ~7M riders | ~3M riders |
| Active Merchants | ~7M+ | ~3M+ |
| Super-App Integration | WeChat Mini Program | Alipay + Taobao |
| Profitability | Profitable since 2023 | Still investing/loss |
| Key Advantage | Scale + logistics | Alibaba ecosystem |
Frequently Asked Questions
Meituan generally offers better merchant coverage, faster delivery, and more reliable service due to its larger scale. Ele.me integrates better with Alibaba services and sometimes offers better deals through Alipay. For most users, Meituan is the default choice because of its broader merchant network and shorter delivery times. However, comparing prices and promotions on both apps can yield savings, especially during peak promotion periods like Double 11 and annual delivery festivals.
Delivery rider income varies significantly by city and work intensity. In Tier 1 cities like Beijing and Shanghai, full-time riders earn RMB 7,000-12,000 per month, while in Tier 2-3 cities, the range is typically RMB 4,000-8,000. Top-performing riders in peak periods can earn over RMB 15,000. However, the work involves long hours (often 10-14 hours daily), physical demands, and limited social protections. New regulations are gradually improving rider welfare but challenges remain in enforcement.