Highlights

• From the industry perspective, the concentration rate of China's catering industry is far lower than that of mature markets such as the US and Japan
• The local life service market is shared by a small number of producers or sellers; the competition is basically between Meituan and Alibaba and in various dimensions, Meituan's data performance is better than that of Alibaba
• The food delivery business injects high-frequency and massive traffic into the group's ecology and has become the cornerstone of the company's mid- and long-term performance growth
• In the in-store and hotel & travel segment, Meituan adopts the commission rate and the advertising model; however, Ctrip is still No. 1 in the industry in terms of the unit price per customer since Meituan targets in low-tier cities
• The ride-hailing business hasn't achieved large-scale profits yet; still, it may increase user consumption frequency and increase user stickiness to the platform as the segment is expected to complete a closed-loop for local life services