BEIJING and SHANGHAI, Oct. 8, 2015 /PRNewswire/ -- China's two major internet platforms, Dianping and Meituan, today announced a strategic cooperation through which both companies will join forces to enhance their respective market position and growth prospects. As part of this landmark transaction in China's internet industry, Dianping and Meituan have jointly set up a new company that is expected to run the leading "online to offline," or O2O, platform in China. This strategic cooperation is strongly supported by shareholders of both companies including Alibaba, Tencent and Sequoia Capital. China Renaissance acted as the exclusive financial advisor to both Dianping and Meituan in this transaction.
Zhang Tao, CEO of Dianping, and Wang Xing, CEO of Meituan, are the co-Chairmen and co-CEOs of the new company. Both Dianping and Meituan will retain their respective brands and management structure, and will independently operate their businesses, including high frequency to-store businesses such as groupbuy and instant payment solution. The cooperation is expected to enable both companies to complement each other in their respective competitive strengths, and to push for innovation across China's O2O industry.
"Over the years, although the two companies were competing and had different focuses, we enjoyed the same goal of helping 10 million merchants to better serve one billion consumers in China, and in this regard, our commonalities far outweigh our differences," said Zhang Tao, CEO of Dianping. "We both recognize the enormous potential of China's O2O industry, and therefore this strategic cooperation was a shared, and almost inevitable, decision. In addition, it also allows both companies to better leverage our respective advantages in order to accelerate product innovation, deepen service offerings, and speed up industry expansion. It will create more value for our consumers and merchants, foster a better O2O ecosystem, and facilitate broader industry development."
"Meituan is very happy to enter into this strategic cooperation with Dianping. It enables us to focus on better serving our consumers and merchants, and allows us to concentrate on developing new businesses and driving product innovation. This cooperation is the common wish for both management teams and our shareholders, and I expect both companies will have very positive chemistry working together. I am fully confident that together we will create an even brighter future," said Wang Xing, CEO of Meituan.
Dianping was founded in April 2003 in Shanghai, China as the premiere website providing independent consumer reviews on local services in the world. Today, Dianping is China's largest O2O (online to offline) platform for urban and lifestyle services. In addition to having the largest merchant information and consumer reviews database, Dianping also offers group-buying, industry leading instant payment solution, largest online restaurant reservation business, take-out delivery, e-coupon promotions, and other O2O services, covering the most comprehensive array of local businesses in industries including dining, movies, lodging, entertainment, beauty, wedding, mom & kids, home renovations, etc. With over 200 million accumulated users, Dianping's leading mobile application has become an indispensable smartphone application for Chinese-speaking consumers, and the most powerful online partner for local businesses.
Dianping is headquartered in Shanghai, China, with established branch operations in 250 cities nationwide.
Meituan was founded in March 2010 in Beijing as China's first groupbuy website. Today, Meituan is China's largest provider for local services with leading market position, tremendous annual turnover growth, and over 130 million annual active purchasers. Meituan currently operates its businesses through three business units: Customers to Shop, Hotel Tourism and Home Delivery Service, and a subsidiary Maoyan Movie. Customers to Shop business includes supports local merchants to promote marketing and management ability. Launched in 2015, Customers to Shop business enhances platform and ecosystem for win-win cooperation with industry partners. Hotel and Tourism business fulfills travel and holiday consumer demands. Launched in 2013, the Hotel and Tourism business currently ranks second in the relevant market in terms of room nights. Home Delivery Service includes restaurant takeaway ordering services. Launched in 2013, it currently ranks No. 1 in the relevant market. Maoyan Movie provides seat-booking services to cinema viewers. Launched in 2012, it has become the leader in the relevant industry segment.
Meituan is headquartered in Beijing, China, with established branch operations in over 1,100 cities nationwide.
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SOURCE Dianping and Meituan