ByteDance has raised the annual target of its local life services business to 50 billion yuan ($7.4 billion), which is higher than the target set at the end of last year.
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.
For people in Shanghai during the latest lockdown, informal community group buying is proving to be a more effective strategy for obtaining food than online grocery platforms.
Chinese tech giant Tencent has recently alpha tested a community group buying (CGB) applet "Exiangtuan" (鹅享团 Èxiǎngtuán) on WeChat.
On Wednesday, Chinese web retail and services platform Meituan announced a new round of adjustments, including the establishment of a special group to make decisions regarding all retail-related businesses.
With several top players withdrawing from the competition, the bloated market is entering a new phase of consolidation.
Chengxin Youxuan, a community group-buying grocery unit backed by Chinese ride-hailing platform Didi, began to scale back its business operations to nine provinces in only three regions, LatePost reported on Tuesday.
ChengXin YouXuan moved its headquarters to Beijing and Hangzhou at the end of July. The firm then cancelled the extra salary of employees and shifted its main goal from pouring money into business growth to pursuing profits.
Chinese ride-hailing giant Didi Chuxing is reportedly planning to spin off its community purchasing business and launch a separate IPO for the platform, which allows buyers to obtain discounts by ordering groceries in groups and have them delivered to their neighborhood, according to tech media outlet The Information.
Chinese food delivery platform Meituan reported better-than-expected fourth quarter and full year revenues but warned that continued investment in its community group buying business would likely lead to losses in future quarters.
People in China shop online for nearly everything. To expand the market size, China saw new opportunities in the community group buying segment.