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China’s E-Commerce Giants Burn Billions in Price War Over “Instant Retail”

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China’s biggest e-commerce firms — Alibaba, JD.com, and Meituan — are locked in a bruising price war to dominate the fast-growing “instant retail” one-hour delivery market, a battle that is slashing profits, fueling deflationary pressures, and drawing regulatory scrutiny.

To capture market share, the platforms are showering consumers with deep discounts and coupons, triggering a cash burn estimated at $4 billion in Q2 alone, according to Nomura. S&P Global projects the three companies could collectively spend 160 billion yuan ($22B) over the next 12–18 months, with little chance of margin recovery for at least two years.

  • JD.com’s CEO Sandy Xu called the rivalry “unsustainable excessive competition.”

  • Meituan’s CEO Wang Xing described a “new phase of competition.”

  • PDD Holdings’ co-CEO Zhao Jiazhen said the intensity had “further escalated.”

The fight began earlier this year when JD.com launched a service to challenge Meituan’s core food-delivery business, prompting Alibaba (via its Ele.me app) to also ramp up spending. Analysts liken the standoff to a “game of chicken,” where whichever firm blinks first risks wasting billions.

Meituan faces the biggest hit, since food delivery is its primary revenue driver. JD.com nearly saw its food-delivery losses erase Q2 profit, while Alibaba is cushioned by its more diversified model.

Despite the bloodletting, executives argue the long-term prize is worth it. Alibaba’s Jiang Fan projects the instant retail segment could add 1 trillion yuan ($137B) in incremental annualized GMV within three years. Early signs show cross-platform benefits: JD.com’s active users grew 40% YoY in Q2, and Alibaba’s Taobao app saw MAUs jump 25% in August, helped by converting food-delivery users.

Still, Beijing is watching closely. Regulators have warned against a “race to the bottom”, and in July the companies pledged to curb destructive price wars under government “anti-involution” measures. Analysts expect some rationalization in competition by 2025, but until then, short-term pain looks inevitable as firms chase long-term dominance.

Zalando Revises 2025 Outlook Amid Inventory and Growth Concerns

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Zalando, Germany’s largest online fashion marketplace, has adjusted its 2025 guidance following the acquisition of rival About You. While the updated forecast reflects higher expected sales, analysts and investors expressed concern over growing inventories, heavier discounting, and signs of weaker consumer sentiment—factors that could weigh on second-half performance.

After initially gaining, Zalando’s shares fell 5.6% to their lowest level in almost a year, bringing year-to-date losses to around 25%. Deutsche Bank analyst Adam Cochrane noted that the stock’s appeal as a revenue growth play is now in question, with less potential for earnings to exceed expectations.

The company now expects 2025 gross merchandise volume (GMV) of €17.2–€17.6 billion ($19.91–$20.38 billion), representing 12–15% growth from last year’s figures for the combined group. This is a sharp increase from its previous forecast of 4–9% growth, largely due to the inclusion of About You, acquired in July for €1.13 billion.

Second-quarter GMV rose 5% year-on-year to €4.06 billion, but gross margin slipped by 80 basis points due to increased discounting. Analysts flagged that earnings quality was weaker than hoped and pointed to a 15% year-on-year inventory rise to €1.66 billion by June 30, raising the risk of more markdowns ahead.

Co-CEO Robert Gentz acknowledged weaker consumer sentiment but remained optimistic about a strong second half. Interim CFO David Schroeder said the third quarter had started well, with mid-single-digit growth expected to continue.

Zalando is also expanding its European logistics network, opening it to partners in an effort to boost growth amid rising competition from fast-fashion rivals like Shein. The company forecasts 2025 adjusted EBIT of €550–€600 million for the combined group, up from its prior estimate of €530–€590 million excluding About You. Gentz added that while U.S. tariffs would not directly affect operations, they could dampen consumer sentiment in the long term.

Spanish Firm GMV Unveils ‘Lunar GPS’ System to Guide Future Moon Missions

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Spanish tech company GMV has launched an innovative lunar navigation system called LUPIN, designed to bring real-time positioning capabilities to the Moon — similar to how GPS functions on Earth. The project is part of a European Space Agency (ESA) initiative to develop cutting-edge positioning, navigation, and timing (PNT) technologies for future lunar exploration.

LUPIN (Lunar Pathfinder Intelligent Navigation) aims to support upcoming missions related to scientific research, resource mining, and even tourism, offering intuitive navigation comparable to using Google Maps or Waze on Earth.

“With this software, we bring Europe closer to establishing a presence of humans on the moon and, potentially, this would be a stepping stone towards Mars,” said Steven Kay, LUPIN project director.

Key Features and Field Testing:

  • Tested in Fuerteventura, a Canary Island with lunar-like landscapes.

  • Utilizes moon-orbiting satellite signals similar to GPS to enable real-time location tracking for astronauts and rovers.

  • Addresses current navigation challenges on the Moon, where latency and lack of direct visibility with Earth complicate operations.

At present, Moon navigation relies on delayed, Earth-based calculations and relay satellites, leading to communication shadow zones and slow response times. LUPIN could transform this by offering on-site, accurate location updates, crucial for autonomous rovers and manned missions.

The system will also integrate:

  • Existing lunar maps

  • Data from orbiting satellites, especially around hard-to-access regions like the south pole and far side of the Moon.

“We want these rovers to map the surface of the Moon in a fast and safe way so that astronauts can return in a few years, work there and set up permanent bases,” said Mariella Graziano, GMV’s head of strategy.

With NASA, ESA, and private players gearing up for a new era of lunar exploration, LUPIN represents a leap toward creating a navigation infrastructure for extraterrestrial mobility — and potentially laying the groundwork for missions to Mars and beyond.