With Alibaba background, why did Ele.me lose to Meituan?

In fact, as early as around 2016, Ele.me completely crushed Meituan.

Why is it being surpassed now?

Let’s analyze it together~~01. Brief description Currently, Ele.me and Meituan occupy more than 90% of China’s food delivery market.

Data shows that the food delivery market share in the second quarter of 2020: Meituan accounted for 70%, Ele.me accounted for 25%, and other platforms accounted for 5%.

Ele.me’s market share is being gradually eroded by Meituan.

You know, Ele.me started in the food delivery industry first.

Why does the first come last?

02. Analyze the first point, traffic advantage.

Meituan’s major shareholder is Tencent, and Tencent’s user base is very large.

Later, Meituan merged with Dianping. In this case, it basically has a place in the catering market.

Ele.me is backed by Alibaba, which only has word-of-mouth, Taobao, and Tmall, these e-commerce platforms.

E-commerce and eating are completely different scenarios, so Meituan basically wins in terms of traffic.

The second point is capital investment.

Alibaba does not pay as much attention to local life as Tencent.

Food delivery platforms need to continuously invest funds to offer discounts.

Because orderers and restaurants have little loyalty or stickiness to the platform, I will use whichever platform offers more discounts.

Without continuous investment, it will be difficult to maintain market share.

The third point is corporate culture.

Alibaba is famous for its Alibaba Iron Army. When it acquires any company, it first parachute management. After parachute management, the original founding team has been disbanded.

Meituan is different. Meituan’s management has grown up through the Thousand Regiments War, and its execution power is very strong.

The fourth point is market strategy.

Meituan’s market strategy is forward-looking.

In the early days, Ele.me planned to start from 12 first-tier cities.

However, Meituan is different. It directly trains 1,000 people and sends them to develop the food delivery industry in 20 cities in China.

By the time Ele.me reacted, Meituan had already occupied half of the country.

03. Summarizing the war between the two, it exactly confirms the old saying that the waves behind the Yangtze River push the waves in front, and the waves in front die on the beach. The market situation is ever-changing and unpredictable.

This also gives some inspiration to domestic enterprises, which must be able to correctly analyze the market status and make reasonable market strategies.

And we ordinary users only need to enjoy the convenience and discounts while eating and eating melons~~~