Filadendron/Getty Images

When was the last time you used a food delivery app? If you're in the U.S., it might have been a while ago, considering 33% of Americans order delivery once every month or less. If you're in China, however, it might have only been a few days. This is the world's largest market for food delivery, with a 2022 study finding over 60% of respondents ordered food multiple times a week.

Just like in the U.S. where DoorDash reigns supreme, China has one major player in this space: Meituan, which is one of the most popular apps in China . Meituan currently has a market share of over 65%, though in recent years, it's faced steep competition from Taobao Shangou (formerly called Ele.me) and JD.com. However, despite a thriving market, until recently, Meituan was effectively losing money on each order.

The reason is simple: Meituan wanted to remain the market leader and invested heavily in subsidies, hoping to draw in new customers.…