The Impact of Meituan's Acquisition of VW Dianping: The Perspective of Building a Business Ecosystem and Industry

Research Article
Open access

The Impact of Meituan's Acquisition of VW Dianping: The Perspective of Building a Business Ecosystem and Industry

Xiaoyu Gu 1*
  • 1 University of Manchester    
  • *corresponding author xiaoyu.gu@student.manchester.ac.uk
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/35/20231716
AEMPS Vol.35
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-091-2
ISBN (Online): 978-1-83558-092-9

Abstract

In China, the O2O industry has undergone rapid development and tremendous changes. From the initial group buying and takeaway services to today's various aspects of hotel accommodation, travel and holiday, ticket booking and lifestyle services, O2O has become an integral part of people's daily lives. The merger between VW Dianping and Meituan is a highly publicized event in China's internet industry. The M&A involves two leading O2O (online-to-offline) platforms, merging two competitors into one massive ecosystem with far-reaching implications for the competitive landscape and business models of China's Internet industry. Against this backdrop, an in-depth study and exploration of the VW Dianping and Meituan mergers and acquisitions can provide a better understanding of the history and trends in the development of this industry, as well as provide more valuable references for future development. By analyzing the motivations for the M&A, the study finds that the M&A has had many positive effects on Meituan and VW Dianping and has driven the efficiency and business expansion of both companies, facilitating the building of a business ecosystem with Meituan at its core, providing opportunities as well as bringing more challenges, while having far-reaching effects on the companies themselves and the industry.

Keywords:

Meituan, VW Dianping, M&A, business ecosystem, internet

Gu,X. (2023). The Impact of Meituan's Acquisition of VW Dianping: The Perspective of Building a Business Ecosystem and Industry. Advances in Economics, Management and Political Sciences,35,22-30.
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References

[1]. Huang X. (2021). Research on the motivation and economic consequences of M&A of Internet companies. Guangdong University of Foreign Studies.

[2]. Li, F. (2023). Competition in the takeaway market is getting fierce with many internet companies entering the market. [online] wappass.baidu.com. Available at: https://baijiahao.baidu.com/s?id=1759033847036656814&wfr=spider&for=pc [Accessed 30 Apr. 2023].

[3]. Trustdata. (2022). January 2022 Mobile Internet Industry-wide Rankings [EB/OL]. http://www.199it.com/archives/1395710.html.

[4]. Ma, X. (2021). Motivation and performance analysis of Meituan’s merger and acquisition of VW Dianping. Master’s thesis for professional degree, Guangdong University of Finance and Economics.

[5]. Jiang, Z., Wang, T. and Li, Z. (2019). Analysis of Meituan’s M&A Behavior Based on Strategic Entrepreneurship perspective. Business Economics, No.511(03), pp.109–112.

[6]. Zhou, R. and Xiao, Z. (2016). Motivations, risks and revelations of the merger between Meituan.com and VW.com. Media Watch, (05), pp.22–24.

[7]. Luo, S. (2020). The commercial power of helping ‘health’ goals--Meituan takeaway expands the ‘health’ ecosystem. Journal of Sustainable Development Economics, No.18(09), pp.45–47.

[8]. Wang, Q. (2019). The ecosphere that can’t be painted round Wang Xing of Meituan is anxious. School of Business, No.172(07).

[9]. Zhao, P. (2021). Meituan reports Q1 2021 earnings: main business continues to rebound, adds 59 million users in single quarter | Minshang Focus - CNN Fujian. [online] www.fj.chinanews.com.cn. Available at: http://www.fj.chinanews.com.cn/news/fj_rmjz/2021/2021-05-31/485185.html [Accessed 1 May 2023].

[10]. Wu, H. (2021). Meituan rose 307% in one year, is it a capital bubble or an explosion of value? ｜Barron’s Top 50 Market Cap Growth. [online] new.qq.com. Available at: https://new.qq.com/rain/a/20210203A0593S00 [Accessed 1 May 2023].

[11]. Qian, M. (2019). Brand value reflects the strength of ‘going abroad’. Fujian Light Textile, No.360(05), p.3.

[12]. Huang, J. (2021). ‘Human and material service’ in the era of AI big data - taking Meituan riders as an example. Journal of Fujian Business School, No.136(02), pp.84–89.

Cite this article

Gu,X. (2023). The Impact of Meituan's Acquisition of VW Dianping: The Perspective of Building a Business Ecosystem and Industry. Advances in Economics, Management and Political Sciences,35,22-30.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-091-2(Print) / 978-1-83558-092-9(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.35
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Huang X. (2021). Research on the motivation and economic consequences of M&A of Internet companies. Guangdong University of Foreign Studies.

[2]. Li, F. (2023). Competition in the takeaway market is getting fierce with many internet companies entering the market. [online] wappass.baidu.com. Available at: https://baijiahao.baidu.com/s?id=1759033847036656814&wfr=spider&for=pc [Accessed 30 Apr. 2023].

[3]. Trustdata. (2022). January 2022 Mobile Internet Industry-wide Rankings [EB/OL]. http://www.199it.com/archives/1395710.html.

[4]. Ma, X. (2021). Motivation and performance analysis of Meituan’s merger and acquisition of VW Dianping. Master’s thesis for professional degree, Guangdong University of Finance and Economics.

[5]. Jiang, Z., Wang, T. and Li, Z. (2019). Analysis of Meituan’s M&A Behavior Based on Strategic Entrepreneurship perspective. Business Economics, No.511(03), pp.109–112.

[6]. Zhou, R. and Xiao, Z. (2016). Motivations, risks and revelations of the merger between Meituan.com and VW.com. Media Watch, (05), pp.22–24.

[7]. Luo, S. (2020). The commercial power of helping ‘health’ goals--Meituan takeaway expands the ‘health’ ecosystem. Journal of Sustainable Development Economics, No.18(09), pp.45–47.

[8]. Wang, Q. (2019). The ecosphere that can’t be painted round Wang Xing of Meituan is anxious. School of Business, No.172(07).

[9]. Zhao, P. (2021). Meituan reports Q1 2021 earnings: main business continues to rebound, adds 59 million users in single quarter | Minshang Focus - CNN Fujian. [online] www.fj.chinanews.com.cn. Available at: http://www.fj.chinanews.com.cn/news/fj_rmjz/2021/2021-05-31/485185.html [Accessed 1 May 2023].

[10]. Wu, H. (2021). Meituan rose 307% in one year, is it a capital bubble or an explosion of value? ｜Barron’s Top 50 Market Cap Growth. [online] new.qq.com. Available at: https://new.qq.com/rain/a/20210203A0593S00 [Accessed 1 May 2023].

[11]. Qian, M. (2019). Brand value reflects the strength of ‘going abroad’. Fujian Light Textile, No.360(05), p.3.

[12]. Huang, J. (2021). ‘Human and material service’ in the era of AI big data - taking Meituan riders as an example. Journal of Fujian Business School, No.136(02), pp.84–89.

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