Didi, Meituan and Ele.me accused of unfair competition

Authorities in Wuxi, Jiangsu Province, are demanding Didi Chuxing, Meituan Dianping and Ele.me stop their alleged illegal activities in food-delivering competition, reports Chinanews.com.

"Preliminary investigation shows the behavior of these platforms constitute unfair competition and monopolistic operations," said Su Yiling, Deputy Director of the local Industrial and Commercial Bureau.

Authorities suggest this is meant to create a "truce" in the trilateral "war" declared among Didi, Meituan and Ele.me.

A courier from Didi Chuxing. [File Photo: Beijing Youth Daily]

A report in the Beijing Youth Daily notes Didi officially debuted its food delivery service in Wuxi on Monday, following an 8-day local trial.

The Beijing-based firm's business expansion is said to be a direct challenge to the main business of Meituan-Dianping after Meituan added a car-hailing function to its app in February.

Meituan Dianping adds a car-hailing function to its app in February, 2018. [File Photo: IC]

Didi claims it received over 330,000 food-delivery orders on Monday, overtaking Meituan in Wuxi in just 9 days.

Market observers in Wuxi say these the two companies, along with Ele.me, are "influencing the normal business of vendors and the shopping experience of consumers, and are threatening market safety."

An administrative interview meeting is held by authorities in Wuxi, Jiangsu Province, with representatives from three online service providers, Didi Chuxing, Meituan Dianping and Ele.me, April 11, 2018. [Photo: Chinanews.com]

The local Industrial and Commercial Bureau in Wuxi has been receiving complaints from shops who are registered on Didi but found themselves forced to go offline on Meituan and Ele.me's platforms, chinanews.com is reporting.

The three platforms have been actively been issuing discounts and other benefits in an attempt to seize market share, as well as taking orders that exceed the capacity of both vendors and couriers, said Su Yiling.

The three platforms said they are willing to accept more market supervision.