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Michael Norris

Opinion | Meituan’s latest push into mobility could help it overcome past problems and bolster overall ecosystem

  • Although it has brought a lot of financial pain so far, on-demand mobility is crucial to Meituan’s overall ecosystem

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Deliverymen package the food they are going to deliver in Jinan, capital city of east China's Shandong Province, July 20, 2017. Photo: Xinhua

Meituan Dianping, the Tencent-backed super app, has dipped its toe further into the on-demand mobility arena.

In November last year, following the ill-fated acquisition of bike-sharing firm Mobike and a costly ride-sharing adventure in Nanjing and Shanghai, Meituan had indicated it would temper its mobility ambitions.

But on April 26, after around six months, Meituan pulled a screeching U-turn and announced partnerships with ride-hailing players Caocao Chuxing, UCAR and Shouqi Limousine & Chauffeur.

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Didi Chuxing, one of the world’s most valuable start-ups with a near-monopoly over China’s ride-sharing market, was not mentioned and the new partnerships mean Meituan users can now hail a ride from any participating ride-sharing company through the Meituan app, upping competition in the sector across 50 Chinese cities.

This move is a big deal. Just as Didi is trying to recover from a scandal involving the deaths of female passengers at the hands of rogue drivers and facing increased regulatory pressure, Meituan is now offering a good chunk of its 400 million users access to non-Didi ride-sharing options.

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Although it has brought a lot of financial pain so far, on-demand mobility matters to Meituan’s ecosystem. Meituan’s restaurant review, venue booking, ticket purchasing and hotel reservation services are all linked to a common theme – going out and having a good time.

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