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What does it mean for Meituan to choose one monopoly (impact on merchants and market competition)

In recent years, the rise of Meituan take-out in China catering industry can not be ignored. However, with the continuous growth of its market share, a business model called "two-in-one for Meituan" has also attracted widespread attention. So, what exactly does the US Mission mean by choosing one monopoly? This paper will analyze the influence of merchants and market competition.

the influence of merchants

Meituan's two-choice monopoly means that Meituan's take-out requires merchants to cooperate exclusively on the platform, that is, merchants can only choose to cooperate with Meituan, but can't choose other take-out platforms at the same time, if they are hungry. This monopolistic behavior has had many influences on businesses.

first of all, meituan's two-choice monopoly limits the independent choice of merchants. When choosing a cooperation platform, merchants can't make flexible adjustments according to their own needs and market conditions, but are forced to cooperate with Meituan. This restriction makes the market choice space of merchants smaller and loses the opportunity to compete with other platforms.

Secondly, the two-choice monopoly of Meituan has intensified the dependence of merchants. Because they can only choose to cooperate with Meituan, the dependence of merchants on Meituan has increased. Once there is a problem with the cooperation relationship with Meituan, the merchants will face the dilemma of not being able to transfer orders and customer traffic in time, which will cause certain risks to the business.

in addition, the two-choice monopoly of meituan has also reduced the profits of merchants to some extent. Because we can only cooperate with Meituan, the competitiveness of merchants on the take-away platform is reduced, and it is difficult to obtain better cooperation conditions and profit sharing ratio. This may cause greater economic pressure for some small businesses.

market competition

the two-in-one monopoly of meituan not only has an impact on businesses, but also has a certain impact on the whole market competition.

First of all, Meituan's two-choice monopoly has reduced competitors in the market. Because merchants can only cooperate with Meituan, the market share of other take-away platforms has been compressed to some extent, resulting in a decrease in market competition. This may lead to the reduction of innovation and diversity in the market, and consumers' choice space becomes smaller.

Secondly, the monopoly of US Mission's two choices may lead to an increase in market prices. Due to the decrease of competitors, Meituan's voice in the market is enhanced, and it is possible to increase the cooperation cost of merchants by adjusting the rate, and then transmit it to consumers. This may lead to an increase in the price of take-away food, which will have a certain impact on the economic burden of consumers.

Finally, the US Mission's two-choice monopoly may also lead to market imbalance. Due to the dominant position of Meituan in the market, other take-away platforms may face greater difficulties and may even withdraw from the market. This will lead to further concentration of market share and aggravate the monopoly position of Meituan.