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ByteDance
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TikTok owner ByteDance ramps up local services expansion, squaring off against industry leader Meituan

  • Douyin, the Chinese version of TikTok, started its foray in the country’s local services market in 2018
  • The ByteDance-owned platform now promotes a service covering ‘local eateries, drinking, fun and entertainment’ to its 600 million daily active users

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Tech unicorn ByteDance, which runs short video-sharing apps TikTok and Douyin, is stepping up its efforts in China’s local services market. Photo: AP
Coco Feng
Tech unicorn ByteDance is ramping up its challenge to Meituan, operator of China’s dominant food delivery provider, through its short video-sharing platform Douyin, the sister app of TikTok, in a move that will expand the country’s e-commerce market for local services.

Douyin, which started its local services foray in 2018, is now providing a service covering “local eateries, drinking, fun and entertainment” to its 600 million daily active users (DAUs), showing popular destinations in a city in the form of video clips and offering discounted prices under its “group chasing” strategy.

The service has a dedicated channel for many Chinese cities on the platform, offering users with coupons and admission tickets to restaurants and hotels. Douyin encourages users to upload videos that endorse places they like, which its algorithm promotes to their target audience. It has also tested a new mapping feature for users to locate various dining and entertainment establishments, according to local media 36Kr.

These recent moves by ByteDance – a company founded in 2012 by internet entrepreneur Zhang Yiming – form part of its ongoing effort to diversify operations and sources of revenue. This initiative includes the launch of its own mobile payment service Douyin Pay, strategic expansion into the video games industry, an education drive and online retail push.
Tech unicorn ByteDance continues its efforts to diversify operations, with its latest initiatives in the local services market against industry leader Meituan. Photo: Reuters
Tech unicorn ByteDance continues its efforts to diversify operations, with its latest initiatives in the local services market against industry leader Meituan. Photo: Reuters

The Beijing-based company’s local services drive means it must go after offline merchants to join its platform.

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