Consumer Staples, Consumer Discretionary, Industrials Jul 31, 2020 03:50 AM (GMT+8) · EqualOcean
According to insider information, Meituan has recently been in frequent contact with its travel suppliers, planning to increase subsidies to users. To be more specific, users can get a 20% to 30% discount for each order through the exclusive entrance of Meituan Dache. The goal is to seize more than 10% of the market share in mainstream cities. Another person familiar with the matter disclosed that there is no clear upper limit on the user subsidy time until the goal for market share is reached. However, massive subsidies can bring high costs. This is not the first time Meituan has used price wars to compete for the car-hailing market. Its actions in 2017 and 2018 brought exponentially cost according to its prospectus. In April last year, Meituan Dache reopened its service in new cities, connecting with travel service providers such as Caocao Chuxing, Ucar, and 01 Zhuanche. This series of actions mean that Meituan is no longer acting on its own, but has turned into an integration platform. According to public information, up to now, Meituan Dache has landed in 54 cities.

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