Meituan Cuts Merchant Fees to Comply With China’s Policy Change
- Commissions for small and medium-sized merchants to be reduced
- China asked for preferential fees for restaurants hit by Covid
A food delivery courier for Meituan in Beijing.
Photographer: Yan Cong/BloombergThis article is for subscribers only.
Chinese food-delivery giant Meituan said it will cut commissions for some small and medium-sized merchants nearly two weeks after new government guidelines asked food-delivery platforms to lower fees for restaurants in pandemic-hit regions.
Beijing-based Meituan will cut 50% of the technical service fee for small and medium-sized merchants in pandemic-affected areas whose daily average user transaction volume has dropped by more than 30%. It will also cap the technical service fee for each order at 1 yuan (16 U.S. cents) after the discount, according to a company statement issued late Tuesday.