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Chapter 15: Food delivery development, strong promotion activities

 In the beginning, orders were mainly placed over the phone and the merchants delivered the goods themselves, but with the development of technology, takeout has become more possible.

In 2008, several college students founded [EatMe] at Shanghai University of Technology, which initially only served students in the university.

In 2011, [Eatme] was doing well and received USD 1 million in Series A financing from Yinshajiang.

In March 2012, [Eatme] launched the first version of the APP!

By January 2013, the [Eatme] APP had complete functions and received a Series B investment of US$6 million.

In 2013, [Eatme] began to officially expand its national presence. In November 2013, [Eatme] received a $25 million Series C financing led by Sequoia China. At this time, [Eatme] had begun to lead all takeaways.

Competitors spend one year, including offline layout, APP development and financial strength.

However, the booming development of [EatMe] has also attracted giants to covet the food delivery industry, and the giants have begun to fail.

In November 2013, [Li Tuan] Huoxian rushed into the field of food delivery and established [Li Tuan Food Delivery].

In December, the e-commerce giant established [Taodiandian], and the search industry giant [Qiandu] also stepped down and established [Qiandu Waimai].

What we should focus on here is [Li Tuan Takeout].

The parent company of [Li Tuan Takeaway] is [Li Tuan].

[Lituan] is an O2O group buying company. It survived the brutal battle of [Thousands of Groups War] and had the last laugh, becoming one of the largest companies in group buying at that time.

Not only did he develop an army of local promoters who are good at fighting, but he also accumulated many different types of customers.

The account manager of [Lituan] just went over to talk to those customer merchants, and these merchants easily agreed to start takeout services on their platform.

Coupled with the strong financial support, [Lituan Waimai] quickly skipped the initial stage and competed fiercely with [Eatme] nationwide.

Of course, [Taodiandian] and [Qiandu Waimai] also have capital support, and their development speed is not slow.

By 2014, [Eatme] was temporarily leading with a share of 30.58%, followed by [Lituan Waimai] with a market share of 27.61%, [Taodiandian] with only 11.20%, and [Baidu Waimai] even lower, with only

8.55%!

In 2015, [Eatme] received US$980 million in financing, and [Lituan Waimai] was not to be outdone. In January, it received US$700 million in financing.

In addition, several other large food delivery companies have also received considerable financing.

Food delivery companies rely on large subsidies to cultivate the market and increase market share.

The war between several takeaway companies is raging across the country.

But to this extent, market subsidies and company funds are important, but the company's own management capabilities are also becoming more and more important.

Compared with [Lituan Waimai], which was born out of [Lituan], [Eat Me] is a bit like a grass-roots army. The founder's management ability is not enough to perfectly control the increasingly large company, and the internal situation is relatively chaotic.<

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The market share of [Eatme] was gradually overtaken by [Lituan Takeaway].

In many companies, the actual market share of [Eatme] is actually not as good as [Lituan Takeaway]!

Of course, at the practical level, a company always has ways to beautify its own data and present it in a better way.

Some people say that history is like a little girl who can be dressed up by others. In fact, it is not just [history]!

Reflected in the market share data, [Eatme] (34.8%), [Lituan Takeout] (31.2%), [Qiandu Takeout] (23.7%), the three major takeout companies account for most of the market, and

[Taodiandian] is completely left behind.

Several major food delivery companies are desperately burning money to grab market share and cultivate the market, which naturally attracts more and more merchants to enter the food delivery platform.

Even some of the world's top 500 companies and large-scale foreign fast food chains are no exception and have fallen out of business one after another.

[Chaofan Group]’s [Shennong Orchard] has also begun to make a name for itself in South China.

Naturally, the three major takeout companies came to visit us, hoping to reach cooperation.

At that time, the food delivery industry was so popular that Su Shixian also planned to use the food delivery platform to further increase the sales of [Shen Nong Orchard], so he carefully inspected three food delivery companies.

[Qiandu Takeaway] used to focus on high-quality takeaways, focusing on serving white-collar people. It seemed to be more sophisticated, but its market share was the lowest, and the first one was rejected by Su Shixian.

Because of the chaotic management of [Eat Me], in the early days, many business managers used their power to engage in corruption, which was difficult for the management to solve, so they adopted a one-size-fits-all policy to restrict the irregularities of business managers, but it also brought a drawback.

It’s just that the operation is rather dull.

The business manager of [Eatme] who came to visit was unable to give Su Shixian a greater discount. In the end, Su Shixian chose [Lituan Takeout] and signed a so-called [exclusive agreement] to obtain the discount of [Lituan Takeaway].

.

For example, the commission for general stores is 20%-23% (delivered by Lituan), with a minimum commission of 4 yuan per order, while the commission for chain brands is 15%.

And [Lituan Takeaway] gives [Shen Nong Orchard] a commission of 13%, which is a two-point discount.

There is also ranking support and related material support.

In March 2015, more than one hundred [Shen Nong Orchard] settled in [Lituan Takeout].

[Lituan Takeout] Although it takes a commission, the emergence of the takeout platform has indeed helped merchants broaden their sales scope, from serving people within three kilometers to a larger area.

It can even be delivered across the city - well, this is usually done in the cake industry, but very rarely!

As merchants expand their sales scope, sales will naturally increase accordingly. In this way, the commission will be irrelevant.

Besides, the wool comes from the sheep. [Lituan Waimai] charges their company commissions and charges their company service fees, so their company will increase the selling price of its products and make up for the profits taken away from consumers.

In a word, making money is necessary, but losing money is out of the question.

Not only [Shen Nong Orchard] does this, but many merchants who have settled in do so!

Merchant prices are expensive, but [Lituan Takeaway], [Eat Me], or [Qiandu Takeout] all offer red envelope coupons or collaborate with merchants to launch full discounts or special offers.

If this is done in this way, the takeout price that consumers can buy will not be too expensive. Occasionally, when they encounter large red envelopes, they can still eat takeout at a low price.

[Shen Nong Orchard] has always taken the mid-to-high-end route, but it still has a bit of style.

Therefore, after [Shennong Orchard] is launched on the platform, it will not participate in the full discount activities, and it will basically not participate in the activities pushed by the platform background. Anyway, it sells at that price, whether you want to buy it or not!

Customers who find it expensive would rather go a few steps further to buy offline, while customers who are not short of money would enjoy the attentive service of door-to-door delivery.


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