A Meituan food delivery courier rides an electric scooter in Chongqing, China, on March 29, 2025. Cheng Xin | Getty Images News | Getty Images In China's fiercely competitive market, the latest price war is playing out in the growing "instant commerce" sector, where companies are launching massive subsidies and other incentives to get consumers to spend. The 'instant commerce' sector is backed by massive networks of scooter drivers that quickly transport everything from food and drink to fast fashion and gadgets. The space is mostly occupied by three main players, including the established e-commerce heavyweights JD.com and Alibaba, as well as delivery platform Meituan, which has historically focused heavily on food delivery. Competition between these companies has intensified this year, with all three expanding their delivery networks and pledging billions in subsidies to merchants and consumers. The result — insanely fast and cheap offers. Perusing through JD.com's delivery platform on Friday, CNBC found coffee as cheap as 10.9 yuan, or $1.50, including delivery fees. Meituan was offering a 13 yuan set of steamed buns and a 26.8 yuan McDonald's breakfast set. However, despite the benefits for Chinese consumers, the price war has also weighed heavily on investors and the earnings outlook. Meituan and JD.com, for example, have seen their shares fall by about 22% and 10%, respectively, this year, according to LSEG data. How did we get here? China's e-commerce players have consistently competed on delivery times, supported by the country's large labor force and gig economy. By building out a strong logistics network, JD had set a standard in the market for same-day or next-day delivery of packages, pressuring competitors like Alibaba. However, China's latest 'instant commerce' battle appeared to start after JD.com's move into the takeout dining market in February, entering a space dominated by Meituan, the market leader, and Alibaba's food delivery platform Ele.me. A delivery rider wearing a JD Logistics uniform adjusts his helmet while sitting on an electric scooter beside a Meituan delivery box, with several other delivery workers nearby, on May 26, 2025, in Chongqing, China. Cheng Xin | Getty Images News | Getty Images