Taobao Shangou Briefly Tops Meituan in Daily Orders

Alibaba’s Taobao Shangou briefly overtook Meituan in daily delivery orders last week, driven by a free drinks promotion, according to technology outlet LatePost.

On August 7, 2025, Taobao Shangou recorded over 100 million orders, still about 20 million behind Meituan, but later surpassed its rival after Meituan ended its own promotional campaign. Morgan Stanley noted that aggressive subsidies are escalating the rivalry, pushing China’s on-demand commerce market toward a near-duopoly between Alibaba and Meituan.

Key Highlights

• Taobao Shangou hit 100M+ daily orders on Aug 7, 2025
• Promotions fueled a temporary lead over Meituan
• Morgan Stanley sees a near-duopoly by 2030

The bank forecasts that by 2030, both companies could each hold roughly 50 percent market share in the instant commerce segment. However, Meituan is still expected to maintain its dominance in food delivery. This example demonstrates how promotional spending can rapidly reshape market dynamics in China’s ultra-competitive delivery sector.

The effectiveness of these campaigns highlights a fundamental challenge for market leaders: maintaining dominance requires continuous investment in customer acquisition, even when holding substantial market share advantages.

Also Read: Why Meituan's Price War in China May Linger

The surge highlights how short-term promotions can rapidly shift market rankings in China’s fiercely competitive e-commerce and delivery sector, where scale, user retention, and subsidy strategies are crucial to gaining market share.