The leading two companies in the domestic food delivery industry – Meituan and Ele.me – are now promoting "group buying food" services, while keeping a low profile.
Many real estate brokerage stores in Beijing had assumed dual roles as package delivery and pick up stations for community group buying platform Meituan Youxuan.
Community group buying platform Nice Tuan had shut down all of its operations in cities across the country. The company has entered an aftermath stage in which it is dealing with payments to suppliers and settlements with employees.
Jingxi, the community and discount purchasing arm of Chinese e-commerce giant JD.com, is reportedly planning to lay off 10-15% of its staff members.
Chinese regulators imposed the maximum penalty of 1.5 million yuan ($235,257) on Alibaba-backed community group-buying platform Nice Tuan after the company failed to rectify product dumping and pricing fraud.
Chen Lei, one of the founding members and the newly appointed chairman of Pinduoduo, says that the firm’s recent success reaffirms their belief that the mobile internet has accelerated the merging of online and offline spaces.
China’s market regulator has imposed fines totalling 6.5 million yuan ($1 million) on five community group-buying platforms affiliated with leading domestic internet companies, on allegations of price dumping and cheating.
Pinduoduo, China’s largest e-commerce platform for agricultural products, has announced its Q3 earning last night and its user number has strongly increased to over 730 million buyers.
Chinese e-commerce platforms are thinking about new ways to help consumers obtain cheaper pork. And the online community group buying model is one of the ways.
Pinduoduo will subscribe to $200 million in GOME convertible bonds and integrate GOME’s product range, logistics and after-sales customer service with its platform.
In Meituan Dianping’s earnings announcement last week, the company said profit increased to 875.8 million yuan ($123.66 million) in the three months ending June 30.