A fierce price war has broken out in China’s freshly brewed coffee market, driven by massive subsidies from major delivery platforms. Kudi Coffee, which normally sells for 15.99 yuan per cup, is now available for as low as 1.68 yuan on JD.com — just 2.68 yuan when packaging fees are included.
This aggressive pricing is part of a wider “subsidy war” that began in April, as platforms like Meituan and JD.com battle for dominance in the food and beverage delivery space. Meituan has pledged to invest 100 billion yuan in the catering industry over the next three years, while JD.com has launched a 10 billion yuan subsidy plan for the year.
Coffee lovers are reaping the benefits. On various platforms, Starbucks drinks are being sold for as low as 25 yuan, while brands like M Stand and Costa are offering discounts of up to 13 yuan during flash sales. Kudi’s official mini program lists the same coffee for 8.8 yuan — still significantly higher than the JD.com offer.
The ultra-low prices have led to a surge in coffee orders. Some stores are now handling thousands of orders daily. One customer joked, “I used to drink coffee every few days, but now I order one almost every day,” while another said, “Even people who don’t usually drink coffee are trying it because it’s so cheap.”
However, not everyone is winning. Industry analysts note that while consumers benefit from bargain prices and platforms gain traffic, the cost is ultimately passed down. Frontline workers at coffee shops are bearing the burden, facing intense workloads and pressure as order volumes spike.
The coffee price war shows no signs of cooling down — but its long-term impact on employees and the sustainability of small brands remains uncertain.
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