You Were Told to Design Software, But You Created Tiktok?!

245: Section 245Because of such high restrictions, Meituan has only opened its food delivery function in less than ten cities.

However, the usage rate of Meituan’s food delivery service in these ten cities far exceeds that of other food delivery apps in the same cities.

As Meituan reached its ten-day mark since launch, the war in the entire group buying and food delivery sector began to enter a phase of massive outbreak.

Time also rapidly flowed forward during this process.

Time quickly arrived a month later.

Chapter 172: Xiao Ma’s Decision, Penguin Attacks the Lower-Tier Market!

As time passed, the Thousand Group Battle finally entered a heated stage.

After the initial period of frantic cash burning, some smaller group buying websites and apps had already announced their delisting within this month.

These companies realized during their operations that, due to the presence of several large enterprises like Penguin Group, the effect of their cash injections on the revenue of their websites and apps was actually quite low.

Rather than continuing to fight, it was better to cut their losses in time.

However, although the first batch of competitors had withdrawn, even more group buying and food delivery apps were launched during this month.

More than a month after Meituan’s launch, the number of group buying and food delivery apps on the market has truly exceeded one thousand!

The current situation of major software is as follows: Meituan has achieved complete dominance in third and fourth-tier cities, leaving its competitors in those cities with no room to retaliate.

And in first and second-tier cities, although Meituan is not first, it is very close, always at the tail end of the first-tier echelon.

In the past month, Penguin Group Buying has been fiercely pressuring Meituan in the market of first and second-tier cities, attempting to drive Meituan out, but Meituan has withstood every offensive.

At the same time, as time passed, most first-tier software had already completed their initial layouts and began to frantically add the number of cities they could serve.

Penguin Group Buying also began to fully attack the third and fourth-tier city markets where Meituan was located.

However, shortly after Penguin began its move, they discovered that something was amiss.

Logically, when their Penguin Group entered the Lower-Tier Market, even if they couldn’t surpass Meituan immediately, they should still have good results and a decent number of users.

But strangely, not only was the number of merchants joining their Penguin Group Buying very low, but they also couldn’t attract many users.

At this moment, inside Penguin Group, in Xiao Ma’s office.

”Something is strange.”

”We’ve been attacking the Lower-Tier Market in third and fourth-tier cities for several days now, so why is the merchant occupancy rate still so low?”

”In the third and fourth-tier cities we’ve opened, the merchant occupancy rate is actually only one-tenth of Meituan’s. How is this possible?”

Xiao Ma’s puzzled voice kept sounding.

And in front of him, on a huge screen, the data for their Lower-Tier Market in recent days was displayed, and this data was quite grim.

”On average, in every third and fourth-tier city, Meituan has thousands of merchants and services, but our Penguin Group Buying has a maximum of only one hundred.”

Looking at the data in front of him, Xiao Ma couldn’t help but frown.

Before, when he realized they couldn’t completely drive Meituan out of first and second-tier cities, he set his sights on Meituan’s stronghold, the various third and fourth-tier cities.

After all, at present, their Penguin Group Buying had already established a firm foothold in first and second-tier cities and could now attack other competitors.

But what he hadn’t expected was that the results of their actions would be so poor.

After Xiao Ma finished speaking, Ma Liuyun also stepped forward and said, looking at the data on the screen, ”I also find this a bit strange. Initially, during negotiations, many merchants were fine, but when it came to actually joining Penguin Group Buying, they hesitated.”

Ma Liuyun looked at Xiao Ma.

”But Mr. Ma, don’t worry, I’ve already sent people to investigate the reason for this.”

”We should know the reason soon.”

Listening to Ma Liuyun’s words, Xiao Ma slowly nodded.

And shortly after their conversation ended, Ma Liuyun received a call.

After a brief exchange with the person on the other end of the phone, Ma Liuyun took a deep breath and looked at Xiao Ma.

”Mr. Ma, I know why Penguin Group Buying’s merchant occupancy rate is so low.”

”Why?” Xiao Ma asked.

Ma Liuyun’s expression was also somewhat serious.

”Meituan’s commission ratio for merchants in third and fourth-tier cities is much lower than its commission ratio in first-tier cities.”

”This ratio is almost at the break-even limit.”

”If these merchants choose to join other platforms, their commission ratio will increase.”

”That’s why these merchants are unwilling to join Penguin Group Buying.”

Subsequently, Ma Liuyun told Xiao Ma Meituan’s commission figures.

Listening to this figure, Xiao Ma was also a bit surprised.

”Generally, such tactics are used when there are competitors.”

”In the current large-scale battle in first and second-tier cities, many software use such low-price tactics to attract users and merchants because they must gain an advantage over their competitors.”

”But before, in most third and fourth-tier cities, Meituan was clearly the only group buying platform. Why did it still use such tactics to attract merchants?”

Xiao Ma couldn’t help but frown.

However, he immediately thought of a new question.

”But,” Xiao Ma looked at Ma Liuyun, ”even if Meituan has such an agreement, our merchant occupancy rate shouldn’t be this low.”

”Currently, in the Lower-Tier Market, the merchants who have joined Penguin Group Buying are basically only large chain brands, with very few private ones. Why is this?”

Xiao Ma was also quite puzzled by this question.

Ma Liuyun was silent for a moment, then explained.