(Yicai) Sept. 12 -- Chinese on-demand delivery giant Meituan has launched a new artificial intelligence-powered app that lets users order food by voice and receive personalized tips, a move aimed at countering fierce competition from JD.Com and Alibaba Group Holding.

Xiaomei was launched today in major app stores and is based on Meituan's large language model LongCat-Flash-Chat, which was unveiled earlier this month. The app is in the testing phase, and users need to obtain a code from Beijing-based Meituan to use it.

Xiaomei combines AI-driven personalized recommendations and conversational ordering to enhance the user service experience and increase user stickiness, said Chen Liteng, an analyst at e-commerce platform operator 100EC’s think tank. The user behavioral data that Xiaomei collects will also help Meituan further refine its algorithms and operations, creating a positive feedback loop, Chen added.

The new AI agent is likely intended to give Meituan an edge in its rivalry with Alibaba and JD.Com, said Zhuang Shuai, founder of Bailian Consulting. But he cautioned that the immediate impact of AI on the user experience may be limited. The long-term winners in food delivery will still be determined by price, product range, and service quality, Zhuang added.

On-demand local services, led by food delivery, have become the main battleground for China’s internet giants since the start of this year. JD.Com launched its food delivery service in February and has been competing with Meituan and Alibaba’s Ele.me in a series of subsidy battles.

On Sept. 10, Alibaba announced the launch of an AI-powered ranking service on its navigation platform Amap, aiming to challenge Meituan's in-store services app Dianping.

This food delivery war has hit Meituan’s earnings. Second-quarter net profit plunged 97 percent to CNY365.3 million (USD51.3 million) from a year earlier, despite a 12 percent jump in revenue to CNY91.8 billion (USD12.9 billion), according to the firm’s latest financial report.

Meituan’s shares [HKG: 3690] ended today unchanged at HKD96.55 (USD12.41) each. The stock had fallen 36 percent since the end of last year.

Editors: Dou Shicong, Tom Litting