China’s Meituan lowers commissions in response to regulatory guidance

A file photo of two Meituan food deliverymen riding their scooters in Beijing on June 26, 2018. Meituan currently charges around 12% in commissions for its food delivery business, a unit accounting for more than 50% of its total revenue, according to analysts estimates. — AFP

BEIJING: Chinese food delivery giant Meituan said on March 1 that it would lower commissions for merchants on its platform, including capping fees for around a million small and medium sized merchants facing operational difficulties at 5% this year.

It would also cut half of commissions, capping at one yuan (66sen) per order, for catering vendors in pandemic-hit areas, Meituan said, adding that it aimed to achieve full nationwide transparency in charging commissions this year.