Direct attack two strong contend: hungry, word of mouth merger, Ali group war escalation


Direct attack two strong contend: hungry, word of mouth merger, Ali group war escalation

Sina Technology Han Dapeng

Rumor has it that the war on local life services is escalating again.

This morning, Alibaba Group announced the formal establishment of the local life service company, hungry and word of mouth merger to form a local life service platform. Ali defines it as an important milestone, and local living services will become the latest highland of Ali's ecological strategy.

The founding of the new company undoubtedly pushed the battle between Ali and the US regiment to a new climax, following news that the US group's latest financing amount was about $4 billion, and that the new company will receive more than $3 billion in investment and continue to overweight.

The two sides have strong financial resources and the same position. The two strong contends are staged again.

Early warning: generation operation + new company

In the eyes of the outside world, the merger of the two sides is an inevitable event, which has also released a lot of signals.

One signal is that as early as April 2016, when Ali became hungry, the takeout service of the WOM platform was already handed over to the hungry. At that time, Alibaba CEO Zhang Yong also said in an internal letter, as one of the highest frequency of local life services, take-out service is an important entry point in local life. The takeaway service will be developed together with the word-of-mouth service for Ali Ecology to expand a new area of local life services and complete an important step from new retail to new consumption.

The significance of the acquisition of hungry Mo is not only to integrate with word of mouth in the catering and living services, hungry Mo City logistics capacity will also provide important support for Ali's new retail sector. For example, Tianmao supermarket, box-and-horse fresh food, smart shop, the integration of hungry delivery capacity will greatly improve efficiency.

"The huge three-dimensional local instant distribution network formed by taking-out service will become the necessary commercial infrastructure in the vast new retail scene." Zhang Yong said.

Another signal was that on August 23, Alibaba disclosed in its new quarterly earnings report that it had set up a holding company for local life services, which also held stakes in Moho and Word of mouth. CEO, a new holding company, is also a member of Alibaba group CEO Zhang Yong.

Final purpose: Sniper beauty Corps review

After the establishment of the new company, the takeaway market will directly become a war between Ali and the US regiment.

So far, neither the takeout nor the starvation of the US troupe have made overall profits, and Ali's continued overweighting of the takeout market means that the day of profitability for both sides will not come soon. Integrating word-of-mouth with hungry, Baidu takeout, Ali's intention to snipe at the US troupe in the area of local life services is clearer.

In an exclusive interview with Finance in 2017, CEO Wang Xing mentioned that Ali still holds shares in the company. "We've helped them find a buyer. But he refused to sell out. He must keep some, perhaps to make trouble for us in the future.

Wang Xing also admitted that the US group review will face greater competition pressure in the takeaway and other markets.

The fact is far more than that. The business competition between Ali and Metro is not limited to take-out, catering, ticketing and other areas of local life. There is also a strong convergence between the two sides in wine travel, cloud computing and other business. Although the Metro review has Tencent's support, but if Ali takes a similar strategy to support hunger in a number of businesses? It will also bring a lot of trouble to the diversified layout of the US delegation.


Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens