For a little shake-up on your business knowledge, volatility means fluctuations in prices, including stocks and currencies. This is precisely what’s happening in Meituan, where over the past few days, thanks to changes in commercial patterns, the company may have experienced a bit of inconsistency as rivals beef up discounting and regulatory checks.
Up to today, it is realizing the outcomes of this inflation, warning that this may continue should there be no policies or partnerships that could break the cycle.
After the earnings meet at that time, the Meituan chief executive officer Wang Xing spoke to economic experts and the media, saying that it was highly improbable to predict and offer financial guidance for the rest of the year, as competition is also heating up in the sector, in terms of online purchases on the app.
It doesn’t matter if this is happening – it’s what the Ridesharing Forum team is saying, listening to this CEO who are working on what could take place next for the company.
“Nobody should be surprised if there is volatility in short-term financial results,” he said.
This is likewise why recently, Meituan is bracing itself for their action-packed battle amidst the intensely competitive industry in this East Asian country. For one, they are being threatened by Chinese food delivery platform Ele.me and China’s service of this kind, as well.
Worldwide, this company has proven itself capable of expanding its reach, yet experts are saying they should focus on where they can maximize their full potential.
“Ten billion [yuan] here, ten billion [yuan] there, every internet player wants to chip 10 billion into this game,” Wang said, as he pledged 100 billion yuan or around $1.3 billion over three years for the supply side innovation.
Meituan also shared insights on the issues it is encountering, moving forward. For instance, they view this competition, despite them being part of it, as “irrational,” plus the technological advancements are seemingly not working for their best interests.
“I believe it’s the job of the regulators [to stop this irrationality] and unhealthy subsidy competition, and it’s our job to win the fight as long as it goes on and we will do everything we can to win that fight,” Wang stated further.
They stay firm on their vision – to win the flight and invite you for more surprises.
More on Meituan, this company is a tech-driven retail firm, a China-based shopping platform for consumer products, such as your favorite food cravings, as well as retail services, including dining, entertainment, delivery, travel, and so much more. It all started in 2010.
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