ByteDance increases bets on food delivery business through partership with Alibaba-backed food delivery platform Ele.me

August 21, 2022 0 Comments

ByteDance has inked a partnership agreement with Alibaba-backed food delivery platform Ele.me to increase its bet on food delivery business, a month after the Beijing-based company launched a food delivery feature within its short video app Douyin.

Through the collaboration, ByteDance will provide food deliver services of restaurants and merchants from Ele.me through short videos on Donyin. Viewers of short videos can place their orders via a min-app of Ele.me embedded within the Douyin.

“Douyin is a great platform to connect users with business partners and merchants,” Douyin chief executive Kelly Zhang Nan said in a statement.

Ele.me became a unit of Alibaba after the Chinese largest e-commerce company bought it for US$9.5 billion in 2018.

The latest partnership between Ele.me and Douyin poses new challenges to Meituan, which has already partnered with Kuaishou, Douyin’s biggest rival, to offer its food delivery service within Kuaishou.

According to data compiled by Statista, Meituan is the largest food delivery service provider with a 67.3 percent share of China’s food delivery market in 2021, while Ele.me had a 26.9 percent share.

It is not first major move for Beijing-based ByteDance to enter China’s highly competitive and crowed food delivery sector. In October 2021, ByteDance was reportedly set up a team for a food delivery business, and the media speculation later got confirmed after the company announced the launch of an internal test for a food delivery mini program called “Xindong Waimai.”

Last month, Douyin launched a new feature that allow users to browse restaurant listing, place orders and access after-sales services in some of its food and restaurant channels.

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