Summary of The Battle Between China's Largest Food Delivery Services Rages On

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In China today, people are used to getting a variety of food products and services delivered right to their door. The three main contenders racing to “get the food to the door fastest without spilling” are Ele.me, Meituan Waimai and Baidu Waimai. Competition is fierce in the online-to-offline (O2O) food delivery market. These three companies have already eliminated a handful of smaller competitors. Liu Sha, editor of tech media platform Ifanr, forecasts how the war for market share might play out. getAbstract recommends this article to venture capitalists, entrepreneurs and analysts.

About the Author

Liu Sha is an editor of Ifanr, an online media platform that provides news and analysis of technological innovations, services and trends.

 

Summary

In 2015, China’s online-to-offline (O2O) food delivery market reached a value of ¥44.2 billion ($6.5 billion dollars). Estimates show that the market will grow to ¥150 billion by 2018. Currently, three major players – Ele.me, Meituan Waimai and Baidu Waimai – hold 37.5%, 30.5% and 15% of the market share, respectively.

Founded in 2009, Ele.me was one of the first O2O food delivery services. Being an early player, Ele.me was able to grab up market share and has managed to sustain its lead. In 2014, the platform saw ¥7 billion in transactions. Alibaba and its finance subsidiary Ant Financials invested $1.25 billion in Ele.me. Alibaba’s backing has directed traffic from Taobao, Alipay and other Alibaba platforms toward the Ele.me portal and increased its overall usage.

Meituan-Dianping, a company that offers group buying ...