Alibaba and Meituan could become a serious threat to each other. For Alibaba, it's critical for its success in the local services sector with high hopes on Ele.me and Alipay.
Lei Wang took on the role of CEO after Alibaba acquired Ele.me at US$9.5 billion in 2018. He then proposed that acquiring 50% of the market share should be the mid-term target of the company, and decided to invest 300 million yuan as subsidies.
After two years, Ele.me’s market share not only hasn’t achieved 50% but rather decreased further.
A Meituan insider told Jiemian News during the first half of this year, that in the sector Meituan has 60% of the market, Ele.me has 30%, while the rest of the competitors share the remaining 10%.
In July, an Alibaba employer told Jiemian News that Alibaba Ele.me’s ...
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