(Yicai) Aug. 6 -- Meituan, China’s largest on-demand services provider, will distribute “booster funds” worth of as much as CNY50,000 (USD6,955) to each smaller food vendor on its platform to bolster their resilience and foster healthier competition in China’s delivery sector.

Meituan will offer the one-time subsidy to more than 100,000 small and mid-sized restaurants this year, prioritizing long-established and well-reviewed businesses with high returning customer rates, the Beijing-based company announced yesterday.

Last December, Meituan initiated the first phase of a CNY1 billion (USD139.2 million) program, providing cash and platform subsidies to support high-quality food merchants. As of last month, the funds had reached over 300,000 recipients, with nearly half reporting a major increase in orders and 40 percent notable revenue gains.

In addition to the subsidies, Meituan’s new program will also support merchants with infrastructure upgrades, free artificial intelligence tools, and promotions for in-restaurant dining. The company is expected to help 200,000 small vendors upgrade their infrastructure.

It follows separate statements on Aug. 1 by Meituan, Ele.me, and JD Takeaway -- China’s three largest food delivery platforms -- announcing their commitment to eliminate unfair competition, normalize promotional practices, and promote a shift in the industry toward a "quality and service" approach to foster mutual benefit and win-win outcomes.

Meituan’s shares [HKG: 3690] closed 1.5 percent higher at HKD121.10 (USD15.43) apiece in Hong Kong today. The stock is down about 20 percent since the end of last year.

Editor: Futura Costaglione