China’s local services giant Meituan has launched a new AI-powered agent, “Xiaomei,” to bolster its position in the highly competitive food delivery and lifestyle services market. The move comes at a critical time as the company fends off growing threats from tech titans Alibaba and JD.com.

Introducing Xiaomei: Meituan’s New AI Companion

Meituan announced the debut of Xiaomei, a smart voice assistant powered by its proprietary LongCat language model. The AI agent allows users to order meals, book restaurants, and receive personalized food recommendations via voice commands. The name “Xiaomei” combines the Chinese word for “small” and a character from Meituan’s own name, presenting the assistant as a helpful, friendly presence within the platform.

This AI initiative is part of Meituan’s broader strategy to enhance user engagement through natural language interaction, reduce friction in ordering, and position itself at the forefront of AI adoption in local consumer services.

A Strategic Move in a Crowded Battlefield

China’s food delivery market — valued at over $80 billion — has become a fierce battlefield. Long dominated by Meituan and Alibaba’s Ele.me, the sector saw a fresh shake-up earlier this year when JD.com entered the game, aggressively offering discounts to consumers and bonuses to riders.

Tensions peaked when China’s antitrust authorities urged the three players to refrain from disorderly competition, especially price wars. Despite those warnings, Alibaba just this week announced an additional 1 billion yuan (~$140M) in incentives to boost its local services, directly challenging Meituan’s stronghold once again.

Against this backdrop, Meituan’s pivot to AI could be a key differentiator — offering not just cheaper services but smarter, more efficient experiences.

Shares React, But the Bigger Picture is Long-Term

Following the announcement, Meituan’s stock rose as much as 1.6% in early Hong Kong trading. While modest, the movement signals investor optimism that the company’s tech-forward strategy could help protect market share and unlock new growth.

The launch of Xiaomei also follows a statement earlier this week from Meituan that it was testing an “agentic tool” to be released imminently, hinting that this is only the beginning of a deeper AI push.

Smart Tech as a Survival Strategy

With Alibaba doubling down and JD.com aggressively expanding, Meituan’s answer is not to fight fire with fire — but rather, to outsmart the competition.

As AI becomes a cornerstone of consumer apps, Meituan’s Xiaomei represents a strategic shift from reactive pricing battles to proactive innovation. In a market as large and dynamic as China’s, the companies that lead in user experience, personalization, and automation will ultimately define the future.