(Yicai) May 27 -- Meituan will spare no effort to secure victory against JD.Com in the food delivery sector in China, according to the chief executive of the country's largest takeaway services provider.

"We are ready and prepared to do whatever it takes to win the fight and solidify our market leadership," Wang Xing said at an earnings conference call yesterday. Irrational subsidies and involution in the industry are unsustainable in the long run, he added.

Large subsidies can stimulate demand, particularly for non-essential goods with high elasticity, including milk tea, coffee, and other beverages, driving short-term growth, Wang noted. Meituan has seen a surge in beverage sales over the past two months, with other food categories maintaining steady growth, he said, adding that more users are increasing order frequency, with core user retention rates remaining high.

China's food delivery industry should transition to a new phase, moving away from irrational subsidy-driven competition for platforms and merchants, according to Meituan.

"Meituan Food Delivery and Meituan Shangou (its quick commerce business) will launch a joint 618 promotional campaign with major food and beverage brands and retailers to offer consumers better deals," announced Chief Financial Officer Chen Shaohui.

Meituan's 618 campaign will begin tomorrow, Yicai learned. The 618 shopping festival, one of China's biggest annual shopping events, was started by JD.Com in 2010.

On April 27, JD.Com announced plans to recruit 100,000 full-time riders for its new food delivery service over the next three months. The Beijing-based firm offered comprehensive benefits to attract workers, including full coverage of the five social insurances (pension, medical, unemployment, work-related injury, and maternity insurance) and a housing fund.

Shortly after, Meituan pledged labor subsidies exceeding CNY200 million (USD28 million) for around two million riders working during the five-day Labor Day break at the start of this month.

On May 12, Meituan revealed plans to launch its international delivery platform KeeTa in Brazil over the coming months, backed by a USD1 billion investment over the next five years.

Meituan conducts thorough market analysis before entering new regions, evaluating the market size, growth potential, market structure, and other factors, Wang said, adding that collaboration with local partners and adapting to local regulatory frameworks and business environments are also critical.

Meituan's adjusted net profit jumped 46 percent to CNY10.9 billion (USD1.5 billion) in the three months ended March 31 from a year earlier, according to its financial report also released yesterday. Its revenue rose 18 percent to CNY86.6 billion (USD12.2 billion).

Editor: Martin Kadiev