E-Commerce

Alibaba’s fight with Meituan is personal as the duo is busy fighting in China

Food delivery system in the current era is just blowing out of proportion. Almost all the countries with raring internet have been hit with the era of food delivered to their home. The fact that you don’t have to dress up, check the weather, walk or drive a certain distance, order the food, eat, then travel back is too much work to do. Imagine doing all this when you have had a long day. This is where food delivery comes in.

There are so many food delivery apps out there at the moment. India is also stricken with this disease of ordering food which is good in a way. People in metro cities order food like anything and most people order at least two to three meals a day. India is also a young country, there are a lot of students ordering food online and this makes it a huge industry in the country. The fact that India is still has a lot of potential to gain internet users also talks about how big the market can be.

If we move our eyes to China, the scenario doesn’t change drastically but it does change. China is a developed nation with a lot of companies looking to get the hold of massive internet users in the country. Although only three companies have shared the internet space in China and out of that three one is Alibaba.

Alibaba is a massive company in China. Its roots are deep and the company has money which is almost impossible to count. It is spread across all the formats of businesses in China and similarly, it is also in the food delivery business.

Beijing is a huge market and Alibaba is a leader when it comes to food delivery. But there is a competitor an old foe of Alibaba, Meituan. Meituan is currently slashing prices left and right and people are loving it in China. There are discounts as deep as 80% on some of the foods which are insane and Alibaba has a competitor to look after.

Meituan and Alibaba are fighting it out and they are ready to cut prices and go into loss than let the other person win. Meituan already operates in 2,800 cities with 600 thousand delivery personnel who serve 400 million customers a year as of now. The number will only increase. The $35 billion delivery market has everything.

The fight is not only for food but for groceries, haircut, massage, office supplies and what not. The companies are fighting it out on every level. It is not about losing to the other company, it is personal. Wang Xing, the CEO of Meituan and Jack Ma don’t get along. This is because the Alibaba was an early investor in Meituan but the duo fell out after Wang and Jack had a different vision for the company.

Alibaba is trying to undercut prices till Meituan falls and the latter is also planning to do the same. The companies are fighting hard and the winner here is the consumer who is having a ball ordering food.

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