Are you hungry? How does Byte’s takeaway heart beat?

Are you hungry? How does Byte's takeaway heart beat?

After the news of TikTok’s internal test “heartbeat food delivery” comes out, the food delivery industry with obvious oligarchic pattern will usher in new variables. Douyin promotes “heartbeat takeaway”, but there seems to be another person who is more emotional than Douyin.

The Photon Planet survey found that in just a few days, many companies and individuals have begun to be tempted by this. “Popular takeaway preparation group”, “Popular takeaway push exchange group”, “Popular takeaway business drainage group”…Various exchange groups have been formed, and the group chats are in full swing. It seems that everyone is always ready to make a big splash.

In addition, local life service providers and local promotion teams across the country have also begun market research, ready to go, trying to seize this wave of dividends.

For many people, every turmoil of a giant is regarded as an outlet for making money.

A local life agent of Guangdong Douyin told Photon Planet that their company and its secondary agents have begun to contact local offline merchants, with the goal of wooing as many merchant resources as possible before the official announcement.

However, the reality is that the Douyin heartbeat delivery model has not yet been determined, and whether it will be directly operated or aggregated has not been officially announced. Xindong Food Delivery is still in the internal testing stage, and has not yet solicited foreign investment.

Many first-line teams that cooperate with Douyin Group Purchase have already begun to speculate on the possible mode of Douyin’s takeaway, and even for themselves anticipated the role they can play in it.

Douyin’s official entry into the game for takeaway seems to be expected, because Douyin has already given a shot at the market when it started group buying a few months ago. “Douyin Group Buying” provides two consumption modes of store verification and logistics distribution, and logistics distribution can be understood as an attempt by Douyin to do food delivery.

Both take-out and group buying belong to the local life service catering sector, and offline catering merchants are their main target groups. Douyin Group Buying was interpreted by the outside world as Zhang Yiming’s high-profile attack on Meituan, but the content attribute of Douyin automatically screened out most of the merchants, and it has not caused much trouble so far.

An insider in the Meituan to-store business group told Photon Planet that Meituan was very cautious after the launch of TikTok group purchase, and did a lot of internal analysis and research. At first, it felt that TikTok group buying is not a small threat to Meituan, but gradually I found that any restaurant that became popular on Douyin was usually only for a short period of time. In the end, this restaurant was better than the previous data on Meituan and Dianping, which means that Douyin group purchases are ultimately just for Meituan. Drainage was done.

However, compared to group buying in stores, the consumption frequency of takeaway is higher and the demand is more rigid. Coupled with the impact of a series of negative factors such as the previous big data on the food delivery platform, the food delivery rider is trapped in the system, etc., the market’s call for Douyin food delivery seems to be even higher than group buying.

I don’t know if “Heartbeat Takeaway” can carry everyone’s expectations for it.

Suffering Duopoly for a long time

 The local life market experienced a thousand regiments battle, and Meituan broke out of the siege. In the takeaway industry, only Ele.me has been with Meituan all the way to the present day.

In 2015, Meituan merged with Dianping, and Ele.me. PlayerUnknown’s Battlegrounds, first merged with Baidu Waimai, and finally embraced Ali’s thighs.

But Ele., who is under Ali’s income, still hasn’t escaped the fact that the market share has been repeatedly compressed, from about 50% three years ago to less than 30% now. In the field of food delivery, Ele.me is the real second in the millennium.

Even if Ele.me and Meituan have a huge market share gap, because there are no other players, the food delivery sector still presents a duopoly pattern.

When the market entry is in the hands of a few players, there is not much benefit for consumers and businesses. Previously, the problems of choosing one of the two food delivery platforms, excessively high commissions, and big data were enough to explain the shortcomings of the lack of competitors. When new variables emerge to break this oligarchic pattern, businesses and consumers are happy to see it.

The takeaway industry and the online car-hailing market have great commonalities. After a new variable appears, it is a common method to burn money to subsidize the market to occupy the market.

Watch out for takeaways officially launched, and the only way to attract consumers in the short term is subsidies. Therefore, whether it is the dominant Meituan or the second hungry, if you want to maintain market share, you will experience a round of money burning war.

Photon Planet found through user surveys that there are several main reasons that attract users to Douyin’s takeaway:

The first is the subsidy. If Douyin has a stronger discount than the other two platforms, they are still willing to use it. After all, everyone has a Douyin app on their mobile phones, and one of the joys of contemporary young people is stalking wool.

Secondly, “what to eat today?” is actually a question that plagues many people. If Douyin’s personalized algorithm recommendation can capture the user’s preferences for ordering and dining, it will be Douyin’s “heartbeat takeaway” and Meituan, hungry. What is the most direct competitive advantage.

The last point is that the video presentation of Douyin will be more realistic and vivid. There are many users who complain about Meituan and Ele. The pictures and text descriptions are too far from the actual situation, and the situation of ordering overturning often occurs. The video presentation may refresh the user’s ordering experience.

In a market environment where industry anti-monopoly regulations have become more stringent, the previous “choose one” policy of food delivery platforms for merchants has no longer worked. At this time, Douyin is entering the game for takeaway. It is a more appropriate time for the platform side, and the business resources will be more flexible.

Photon Planet asked many offline catering merchants about their willingness to settle in Douyin Heartbeat. At present, the most concerned questions are whether they can already settle, how to settle, and what are the thresholds for settlement.

For these offline merchants, Douyin is almost unanimously applauded for their take-out. This gives them an additional channel to reach consumers, and it can also force Meituan and Ele.me to benefit more merchants.

With the current “heartbeat takeaway” model undetermined, Douyin’s takeaway is the most attractive for merchants mainly because it has over 600 million daily activities. In terms of user volume and user activity, compared with Meituan and Ele.me, Douyin is undoubtedly in the lead.

Therefore, everyone is looking forward to some new stories in the food delivery industry.

It is more likely to do aggregation mode in the early stage

There are media reports that “Heartbeat Takeaway” is likely to invite catering merchants in Douyin to settle in, and the merchants will provide delivery services independently. At the same time, it does not rule out becoming an aggregate mode of takeaway platform, and conduct takeout business guidance with Ele.me or Meituan. Flow cooperation.

Therefore, the Douyin takeaway model is now mainly based on the guesswork of the two models of direct sales and aggregation.

Meituan’s local life business is mainly based on the strategy of “high frequency and low frequency”, that is, through high-frequency rigid demand services such as food delivery, it drives lower-frequency consumer services such as wine travel, group purchases, and movie performances on the platform, thereby realizing the entire Linkage of local life.

Compared with other commercialization measures of Douyin, such as e-commerce and group buying, take-out order meals are quite different. E-commerce and group buying are more inclined to low-frequency non-immediate consumption. For this, Douyin adopts the strategy of “information to find people” to make recommendations to users. The user swipes the video, and then stimulates the behavior of the transaction through the content. This process is accompanied by factors of random and perceptual consumption.

Therefore, this “information looking for people” recommendation model does not match the user’s habit of ordering food. Takeaways are more inclined to instant consumption, and have higher requirements for timeliness and distance. Compared with more public domain recommendations such as group buying or e-commerce, it is obviously difficult to ensure that users can eat at a predetermined time.

The internal beta version of “Xindong Waimai” is a small Douyin program, whether it is to channel traffic to Meituan, Ele.me and other food delivery platforms for aggregation, or directly introduce merchants for direct marketing. At least it is certain that Xindong Food Delivery will be made into a platform-based applet to strengthen user search attributes.

Tanqi Network is one of the first regional service providers for Douyin’s local life business. After Douyin Group Buying went online, they cooperated with Douyin’s official website to provide third-party Mini Program Linking to POI and merchant operations and other related services for Douyin Group Buying. . The TikTok group buying segment now mainly includes two parts: the official company Blue V and the third-party applet made by the service provider, which is a double-point breakthrough.

An insider of Tanqi Network said, “Since the public internal beta of Douyin Waimai, it has not disclosed any relevant information about the operation model of’Heartbeat Delivery’, including information on regional agent investment promotion. Based on past experience, if Douyin is going to be directly operated, so it will inevitably recruit agents and service providers across the country in advance, and the first-line teams from all over the country will complete the signing and operation of merchants. We now have a large number of merchant resources in hand. Ying, usually reveals the news to us in advance, but Douyin has not given any notice so far.”

ByteDance is not like Ali and Meituan who have built their own local push forces, so they can rely on their own local push team to sign offline business resources. Byte’s main business is concentrated online. If you temporarily build a front-line team by itself, it will consume more time and money. If you want to take advantage of this business, you will inevitably seek third-party cooperation.

In addition to the expansion of merchants, direct sales also face problems to be solved by the distribution team. As predicted, let the merchants solve the distribution problem by themselves, the acceptable range of merchants is limited. Photon Planet found through online research that more than 70% of offline merchants are not positive about building their own distribution teams. In addition to considering issues such as cost and energy, more depends on whether the sales volume of Douyin Takeaway is worth setting up a distribution team by yourself.

Now users order food mainly in Meituan takeaway and Are you hungry? Their habits cannot be changed at once. Coupled with the lessons learned from the difficulty of group buying and operation of Douyin, some merchants said that even if Douyin opens merchants, they will not immediately build their own distribution team, and they have to look at the specific market conditions before making a decision.

The catering brand KFC has had its own offline delivery team in the past few years. Regarding whether to consider entering Douyin Heartbeat Takeaway, a KFC insider said that if Heartbeat Takeaway is directly operated by the merchants, the merchants own their own delivery team, and KFC is stationed. The odds are great. “First of all, KFC now has its own delivery team; in addition, KFC has already opened an official small program on Douyin before, and has realized ordering in Douyin, and it is within the strategic scope to use Douyin as a delivery channel.”

But even if businesses like KFC that have their own delivery teams can become seed businesses that appeal to takeaways, they are only a minority in the entire catering industry.

Therefore, it is more likely and easier to do the aggregation mode of Xindong Food Delivery, especially in the initial stage. This is similar to Autonavi. In the absence of its own fleet resources, it uses its own traffic advantages to aggregate various online ride-hailing platforms to provide a traffic portal for other platforms.

The advantage of Douyin also lies in traffic. Compared with tool apps such as Meituan, the frequency and length of time users open Douyin every day have advantages. In the aggregation mode, it seems more realistic for both the takeaway platform and Douyin itself to take what they need.

Insiders of the aforementioned Douyin local life service provider said that the heartbeat delivery model may adopt initial platform aggregation and then gradually expand to direct sales. This is similar to Douyin’s e-commerce business. It starts to drain traffic for third-party platforms such as Taobao, and waits for user acceptance to improve and the model runs through before transitioning to doing it on its own.

Meituan, are you hungry?

Traffic anxiety is a common dilemma faced by trading platforms, including e-commerce platforms. TikTok, as a high ground for traffic gathering, was once regarded by many applications as a leading advertising position. Meituan Waimai and Ele.me are no exception. The official enterprise account has already been opened on Douyin before.

Meituan Waimai is mainly engaged in content operations to increase exposure, and there is also external chain guidance for official APP downloads. In addition to related content operations, Ele.me has already connected to Ele.me’s takeaway and same-city takeaway services. Users can already order takeaways directly in Douyin.

Are you hungry? How does Byte's takeaway heart beat?

 Screenshot of the official TikTok account of Meituan Waimai and Ele.me

For Meituan and Ele.me, they position Douyin as a traffic platform, and then promote and attract traffic for their apps. This seems to be the most appropriate degree for these third-party platforms to cooperate with Douyin.

“Xiaoyin Food Delivery” is a convergent platform, and it is regarded as the most feasible way for Douyin to enter the food delivery field for third-party food delivery platforms, but this is only from the perspective of Douyin.

From the perspective of Meituan, Douyin has officially entered the game for takeout, and its relationship with Douyin will undergo subtle changes. It will become a competitor from the original drainage tool. Even if it is called an aggregation model to provide traffic entrances for third-party platforms, Taobao’s lessons learned from the past are seen in everyone’s eyes.

As a competitor, is Meituan willing to settle in “Xiaoyin Takeaway” to cultivate early user habits for Douyin Takeaway? This will hit a question mark. They introduce their own resources to Douyin and do market education for Douyin takeaways, which is tantamount to cannibalizing their original market.

Douyin launched its payment function at the end of last year. The purpose is to create its own closed-loop transaction within Douyin and keep user transaction data in its own hands. If third-party platforms such as Meituan and Ele.me settle in Heartbeat Delivery, their transactions will also be completed inside Douyin, and the possibility of channeling to their own apps is almost zero. As a result, it remains to be discussed whether Xindong Food Delivery can be aggregated to third-party food delivery platforms such as Meituan.

As far as the current market structure is concerned, Meituan Waimai, as the largest food delivery platform in China, has not yet reached the point of self-destructing its hunger for traffic. If Douyin can’t do it, Meituan Takeaway is still the user’s first choice. This is why Ele.me, the second child, has opened a takeaway service on Douyin, while Meituan only does content operations.

According to data compiled by the Prospective Industry Research Institute, Meituan’s takeout accounted for 67.3% of the main takeaway platform market in the first quarter of 2021, and Ele.me accounted for only 26.9%. For Ele.me, it occupies the second place in the industry, but its market share is less than half of Meituan. Obviously, Ele.me’s thirst for traffic is much higher than that of Meituan, so Ele.me is more likely to enter the “heartbeat takeaway”.

As far as Ele. Yu is concerned, taking this opportunity to throw in the arms of Douyin may be regarded as an opportunity to catch up with Meituan.

Many people say that Douyin wants to be a high-tech taxi in the food delivery industry, but the pattern of the taxi market is different from that of the food delivery market. The online car-hailing industry has “one super, many powerful”, led by Didi, and there are too many other large and small online car-hailing platforms. There is no shortage of players in the online car-hailing market. In the case of Didi dominance in the past, for a group of small platforms, it is in the interest of all parties to converge to form a confrontation with Didi.

The takeaway market is different from it. The industry oligarchy pattern is obvious, and the lack of small and medium-sized takeaway platforms makes it difficult to aggregate to form a scale effect. The data shows that as of Q1 of 2021, the three mainstream food delivery platforms Meituan Waimai, Ele.me, and Ele.me Xingxuan accounted for 98.2% of the market share. It doesn’t seem to be of great significance for the heartbeat to do aggregation.

Of course, in addition to takeaway platforms, community group buying platforms such as Daily Optimal, Dingdong Maicai, and Orange Heart Optimal may be the targets of aggregation.

Therefore, Meituan and Ele.me may choose different paths for Douyin Takeaway’s aggregation mode, but they are in an awkward position. It is of course good for them to get TikTok’s drainage, but the price is to indirectly educate the market for Douyin takeaways.

Whether Meituan and Ele.me dared to be tempted by Douyin, in fact, it also directly affects the specific development trend of heartbeat delivery.

Regardless of the specific model of Douyin’s “Heartbeat Takeaway”, it is only part of the Douyin ecosystem in the final analysis. It can be analogized that even if “e-commerce” has become a strategic business of Bytedance, it is difficult for it to have a disruptive impact on Taobao, JD.com and other e-commerce platforms in the Douyin ecosystem.

Under such a background, Xindong Food Delivery may revisit the old ways of group buying and e-commerce as a supplement to the Douyin ecosystem, but it is difficult to achieve a scale effect.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/are-you-hungry-how-does-bytes-takeaway-heart-beat/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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