Chinese food delivery giant and rating platform Meituan Dianping has recently removed Alipay, Alibaba’s online payment platform, from its app. According to Tech Planet, some users couldn’t find Alipay on Meituan while monthly payment, debit card, WeChat Pay and Apple Pay are still available. Some netizens even complained with Meituan. “Why doesn’t Taobao support WeChat Pay?” Meituan CEO Wang Xing said on social media. “WeChat Pay has more active users than Alipay and lower transaction fees.”
Meituan Dianping is China’s leading e-commerce platform for services. With the mission of “We help people eat better, live better,” the Company’s platform uses technology to connect consumers and merchants. Service offerings on the platform address people’s daily needs for food, and extend further to broad lifestyle and travel services. Meituan is the world’s leading on-demand food delivery service provider and China’s leading e-commerce platform for in-store dining services.
Meituan helps consumers discover merchant information, make informed decisions, complete online and offline transactions and enjoy on-demand delivery. The Company currently owns several household brands in China, including Meituan, China’s leading online marketplace for services, Dianping, China’s leading online destination for discovering local services, Meituan Waimai for on-demand delivery services, and Meituan Bikes for bike-sharing services. Meituan has 450.5 million Annual Transacting Users and 6.2 million Annual Active Merchants as of December 31, 2019. The Company operates in over 2,800 cities and counties in China.
Meituan vs Alibaba
This is not the first time that Meituan has controverises with Alibaba. The Beijing-based app also blocked Alipay in 2016 and 2018. Alibaba currently holds 1.48% of Meituan’s shares. So, what’s going on? On May 29, Meituan launched its monthly payment plan where users can “buy this month and pay next month” with a maximum interest-free period of 38 days. It also supports installment payments up to 12 months.
Meituan’s revenue dropped 13% in the first quarter of 2020 due to the impact of pandemic outbreak. “Despite the short-term setback, we have strong confidence in our long-term growth. The pandemic has made society more aware of the urgency and importance of digitizing the service industry on both the demand and supply sides, and it has also strengthened our determination to continue upgrading many of the core elements of our business model,” Meituan’s chairman and CEO, Wang Xing, said last April. The company has since launched “contactless delivery” services to reboot delivery orders during the quarantine.