The food delivery war is on amongst the three players with JD with vast amount of cash coming in to compete for a slice of the market. What other better ways to steal market share legitimately than to slash your price and entice your competitors's workers over with better benefits ?
You save money and time on training and they can be productive on day 1 where time is of the essence in this game. Meituan should join forces with JD.com and push Alibaba food delivery arm (Taobao and Ele Me) out of the game. Meituan is already the number one player with close to 70% market share and to grow organically - it is tough unless they are willing to offer more benefits to the workers (sadly they are looked upon as transactional costs and easily replaceable in a country like China with excessive people to hire)
Value add ? Nobody needs that when their stomach is growling, just deliver within time and the right order , that is all. That is why time is crucial and many accidents had happened especially during the peak hours (lunch and dinner time) and on rainy days. I have a lot of respects for these drivers, end of the day they are just someone's husband and daddy brining food to their own table by slogging hard under the harsh weather and speeding through the traffic.
I am vested in all 3 companies so will continue to observe the price action and update later.
You save money and time on training and they can be productive on day 1 where time is of the essence in this game. Meituan should join forces with JD.com and push Alibaba food delivery arm (Taobao and Ele Me) out of the game. Meituan is already the number one player with close to 70% market share and to grow organically - it is tough unless they are willing to offer more benefits to the workers (sadly they are looked upon as transactional costs and easily replaceable in a country like China with excessive people to hire)
Value add ? Nobody needs that when their stomach is growling, just deliver within time and the right order , that is all. That is why time is crucial and many accidents had happened especially during the peak hours (lunch and dinner time) and on rainy days. I have a lot of respects for these drivers, end of the day they are just someone's husband and daddy brining food to their own table by slogging hard under the harsh weather and speeding through the traffic.
I am vested in all 3 companies so will continue to observe the price action and update later.
Note
of the 3 companies, I am seeing red in Meituan , disappointed at the high capex and profitability of the company! Will be waiting for it to go 80 dollars level before accumulating..........
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.