Meituan spends $51 million on first share buyback as investor confidence runs low. Credit: Meituan
In a New Year letter to employees, a Meituan executive conveyed a shift in the company’s focus, stating that they are now catering to users seeking low prices across the internet, departing from the previous targeted search-based consumer approach, as reported by local media outlet Jiemian. Zhang Chuan, president of Meituan’s store business group, expressed the belief that this year presents a opportune time to confront intense competition. He emphasized the need to establish a new supply model centered on providing “daily low prices.” Notably, ByteDance’s Douyin poses a significant threat to Meituan, with the widely-used short video platform reporting a 256% growth in gross merchandise volume (GMV) for local life services last year. Zhang characterized Douyin as an influential and rational opponent, describing the ongoing battle as a “brutal and tormented warfare” without an immediate winner. [Jiemian, in Chinese]
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