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16 May 2018

Why Meituan-Dianping’s expansion makes sense

Hans Tung and Zara Zhang, GGV, comment on Meituan-Dianping’s expansion and the ambitions of Wang Xing, the CEO of Meituan.

Author: Hans Tung and Zara Zhang, GGV

Providing a multitude of services as a “super app” allows Meituan-Dianping to generate significant revenues from merchants and avoid using capital-intensive subsidies to lower prices for consumers and also potentially disrupt traditional advertising-only media models. This is a fundamentally sound business model that will be hard for competitors to beat. Super apps, if thoughtfully designed, can be beneficial to both the company and the consumer.