Wednesday, 2024 May 29

Does a monopoly lead to worse user experience?

Chinese people’s aspiration for a better life needs to be secured by two ride-hailing platforms.

– Wang Huiwen, Senior Vice President, Meituan-Dianping

The words of Wang were delivered shortly after Meituan-Dianping, China’s largest e-commerce platform, recently tussled for market share with Didi in its own game of ride-hailing.

Wang Huiwen spoke at a local conference, explaining how the best time to enter a monopolised market is when the dominating party has not utilised its capital to benefit the users substantially, creating an opening for another party to compete.

With $1 billion yuan (approximately US$160 million) in capital at their disposal for its ride-hailing arm, Meituan is slowly eating into Didi’s market share, dishing out greater benefits for drivers and discounts for passengers. Its service has already launched in Nanjing and Shanghai with great popularity.

36Kr Global Contributors
36Kr Global Contributors
The tech ecosystem is roaring. Unicorns valued at billions of dollars have emerged worldwide, while venture capital and strategic investors are constantly on the lookout for the next big thing. 36Kr Global is committed to establishing ties between global stakeholders and providing the most vital information about China’s tech scene and capital markets.

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