Meituan-Dianping, China’s largest on-demand services provider said on Thursday [19 October 2017] it has raised $4 billion in its latest financing round that values the company at $30 billion. The round was led by Tencent Holdings Ltd, and includes new investor the Priceline Group and other key investors including Sequoia Capital, GIC of Singapore, Canada Pension Plan Investment Board, Trustbridge Partners, Tiger Global Management, Coatue Management and China-UAE Investment Cooperation Fund, the company said in a statement…Full Article: China Daily Oct 2017
- In China, the primary competitor of Meituan-Dianping is Alibaba’s Koubei.
- As of August 2017, Eleme had a 41.7% market share, followed by Meituan Waimai at 41%, and Baidu Waimai at 13.2%.
- In June 2017, Eleme had 34 million active users, Meituan Waimai had roughly 30 million active users, and Baidu Waimai had 17 million users.
- From December 2016 to early January 2017, the Beijing Food and Drug Administration (BFDA) ordered 225 online meal ordering/delivery businesses to close, as well as 4,409 registered restaurants to “overhaul their practices”. The majority of the offending businesses were registered with Baidu Waimai, Meituan Waimai, and Eleme.
- In December 2016, Alibaba used the “Double 12” shopping promotion to market Koubei to customers. During the same month, Alibaba announced it was close to securing a USD 1.2 billion in financing its online platform (food delivery), Koubei. Potential investors included California’s Silver Lake Management (private equity), CDH Investments, China Investment Corp (CIC), and Yunfeng Capital.
- In September 2016, Chinese media reported that Baidu was close to reaching a deal to sell Waimai (food delivery business) and Nuomi (e-commerce) to the Tencent-backed Meituan-Dianping. In general, China’s three primary online (e-commerce) food distribution players are Baidu, Tencent (see JD.com) and Alibaba Group (see Eleme).
- In August 2016, Beijing Food and Drug Administration (BFDA) announced they began investigating Baidu Waimai, Meituan Waimai, and Eleme. According to the BFDA, they will investigate restaurants or food providers from all three e-commerce websites. Violations typically entail fines of up to CNY 200,000 (US$30,145) for the hosting e-commerce platforms.
- In May 2016, a Shanghai court ordered Baidu (search engine) to pay CNY 3 million (~US$456,900) in damages to Dianping over copying comments and other information to Baidu controlled sites.
- In November 2015, according to Data Center of China Internet (DCCI), Baidu Waimai had a 32% market share, followed by Meituan Waimai at 31.2% and Eleme at 29.8%.
- In October 2015, Meituan.com and Dianping announced they would merge. The combined Meituan-Dianping company would be worth an estimated USD 15 billion. The investment bank, China Renaissance, assisted the financial aspects of the merger.
- In June 2015, Alibaba and Ant Financial acquired Koubei [50/50 joint venture, US$483.3 million each] to counter the Tencent-backed (see also JD.com) Meituan-Dianping online platform.
- Founded in 2003 and headquartered in Shanghai, Dianping is a restaurant-review and group-buying services platform. It has been compared as a mixture of US-based commerce sites of Yelp (restaurant review) and Groupon (e-commerce merchant). Its primary competitor in China was the Beijing-based Meituan.com (founded in 2010).
Hong Kong Trends