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Comment on China’s Meituan and Dianping Merge To Form O2O Giant by David Hsiao
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Comments for TechNode
As China’s tech services market becomes increasingly crowded, large players are looking to consolidate their stake fast, hoping to cash in on early adoption.
The two companies has a combined more than 80% of China’s group-buying market as of the first quarter of 2015, according to Eguan, a Chinese market research firm.
58.com, Baidu and Koubei, the new initiative by Alibaba’s finance arm Ant Financial, are determined to also get a piece from the online-to-offline service market.
Apart from charging merchants relatively low commissions, venture-backed tech startups subsidize users for the sake of market share in the O2O field.
The merger between Dianping and Meituan will not only help consolidate their market share, but stem the massive spend both companies invest in subsidizing their services.
['meituan'
'china'
'form'
'dianping'
'source'
'market'
'chinas'
'chinese'
'services'
'technode'
'service'
'merger'
'o2o'
'share'
'merge'
'giant'
'groupbuying']