BEIJING, Nov 28 (Reuters) - China's leading food delivery group, Meituan, reported on Friday a 2% rise in third-quarter revenue, beating analyst estimates, as it intensifies efforts to compete for market share in the instant retail sector, where goods are delivered within an hour.
The company reported, however, an adjusted net loss of 16 billion yuan ($2.26 billion) for the quarter ended September 30, compared with an adjusted net profit of 12.8 billion yuan in the same period a year ago.
Meituan has invested heavily to defend the nearly 70% market share that it controlled at the beginning of this year as rivals Alibaba and JD.com spend massively to subsidise customer acquisition.
The firm has consistently said defence of its customer base will prove expensive, pressuring its profit margin in the near term.
Meituan shares have dropped more than 30% so far this year.
The company also offers other services, such as bike-sharing, ticket-booking and maps.
($1 = 7.0764 Chinese yuan renminbi)
Reporting by Beijing Newsroom; Editing by Jacqueline Wong and Tomasz Janowski
Source: Reuters