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Chapter 294: Group Buying Storm Rises Again, Shen Nanpeng

~10 min read 1,895 words

Meituan delivery riders' base salary is 1, 00 yuan, half a month is 700 yuan.

Wang Huiwen responded, called over an assistant, gave brief instructions, and sent them downstairs to handle it.

The registration portal for Meituan part-time riders had been open for only 24 hours, yet already attracted over 400 part-timers; at the current trend, it could expand to over ten thousand within a month.

What value do those people downstairs still hold?

"Fuck! Only 700 yuan? Are you treating us like beggars?"

"Oh my, that's downright unethical!"

"700 is 700!"

Over thirty food delivery riders: half took the money and left, the other half kept cursing, insulting every one of Wang Xin's close relatives.

Only when the Police Inspector's office sent personnel over did both sides reach a compromise, each stepping back slightly—Meituan added 100 yuan in compensation, and the riders dispersed.

These people didn't go straight home; instead, they smiled, took their money, and gradually headed to KuaiPao's delivery stations.

They registered, signed labor contracts, collected uniforms—after going through the entire process, Meituan's riders became KuaiPao delivery staff.

As for Meituan's part-time riders? Even dogs won't do it!

The next morning, Meituan rider numbers in Chaoyang District surged; KuaiPao riders immediately noticed and reported the situation to their station, which then relayed it to headquarters.

"Part-time riders, outsourced model? This move is brilliant!"

Upon learning this, Pei Yi immediately realized the seriousness of the situation.

In fact, Wang Xin's tactic still relied on the human wave strategy, aiming to win by sheer volume.

Thus, anyone wanting to earn a bowl of noodles could ride a bicycle and deliver two orders—delivery efficiency was low, but there were simply too many people.

KuaiPao had always capped the number of riders; only when daily order volume rose would they initiate recruitment to ensure every full-time rider's income.

The number of part-time riders was also strictly controlled.

Otherwise, when orders came in, should they be assigned to full-time or part-time riders?

Too many people flooding into an industry at once only causes per-capita income to drop.

In the short term, revenue and gross profit are fixed; the more people, the lower the unit price.

This principle applies universally, whether in food delivery or any other commercial field.

After pondering and clarifying the logic, Pei Yi pulled out his phone and called Chen Yan, updating his boss on Meituan's new operational changes.

"Boss, should we raise the approval rate for part-time riders to compete with Meituan for idle delivery capacity?"

After his report, Pei Yi asked Chen Yan cautiously.

"Ignore them! Riders who can deliver over twenty orders a day will naturally flow to KuaiPao. Wang Xin's move saves costs and solves capacity shortages in the short term, but most of these part-timers are just playing around—they're hard to control, and will inevitably trigger widespread customer complaints."

"While order fulfillment capability is indeed a food delivery platform's core, planning for merchants, users, and marketing campaigns matters just as much. What's your advantage?"

Chen Yan asked.

KuaiPao's advantage?

Of course, it's the backing of Senlian Capital, with secondary entry points on QQ and WeChat, Orange App Store, AutoNavi, Today's Headlines, and Lingxi Browser; funding flows in from the group, Ali, Penguin, and other companies.

Money? Plenty. Traffic? Plenty. Strong troops, solid strength!

"Boss, I get it," Pei Yi replied with a smile.

He should use KuaiPao's strengths to exploit Meituan's weaknesses—concentrate manpower, resources, and capital to boost subsidies for merchants and users, leaving Meituan's riders with no orders to take.

Once they can't make money, who'll bother playing along with Wang Xin?

After hanging up, Pei Yi immediately called a meeting with the heads of KuaiPao Beijing's operations, marketing, field promotion, and events teams.

In short, whether for group buying or food delivery, subsidies were to be maximized—price wars to crush Meituan.

New group-buying customers received a 10-yuan no-threshold coupon; returning customers got a 5-yuan no-threshold coupon daily.

One-yuan flash sales, 9. -yuan flash sales—four sessions daily, from 10 a. . to 12 p. ., 6 p. ., and 8 p. . locking users firmly into the KuaiPao app.

New food delivery customers got an immediate 15-yuan discount, matching Meituan.

From strategy alone, Pei Yi's approach mirrored Liu Qiangdong's original tactic against Dangdang: stabilizing the food delivery market while rapidly eroding Meituan's group-buying market share through high subsidies and zero-profit marketing.

"KuaiPao's subsidies will stop only when Meituan exits the market."

Pei Yi instructed the heads of the East and North China regions: this time, they'd crush Meituan to death.

For merchants, they implemented a dual rule: lower commission rates and free commission periods; if Meituan's KA merchants agreed to an exclusive "choose-one" contract, KuaiPao would grant them three months of free commission.

Cut off Meituan's escape route at its source.

As soon as KuaiPao launched its subsidy war, Lashou, Dianping, and WoWoTuan got caught in the crossfire—users flooded out, all rushing to KuaiPao for discounts.

That afternoon, Lashou officially announced it was renaming itself QianDu Lashou Network.

And it loudly joined the subsidy war, offering aggressive promotions for both new and returning customers.

Zhang Tao of Dianping cursed under his breath: "Another stick stirring the shit!"

After cursing, Dianping quietly adjusted its new and returning customer subsidies to avoid losing market share.

Only WoWoTuan's Wang Yunming was truly out of money; to make cash, he even dabbled in e-commerce—how could he afford to fight KuaiPao, Lashou, and Meituan? As a result, KuaiPao, Lashou, and Meituan's market shares all rose, while WoWoTuan gradually vanished.

Meanwhile, KuaiPao and Nuomi also accelerated their business merger, and Pei Yi deployed staff trained under the "Thousand People, Hundred Cities" program to mid- and small-tier cities where Meituan had the strongest presence, engaging them head-on.

Wang Xin had risen from the "Hundred Group-Buying Wars" not only due to his powerful field promotion team but also thanks to precise market positioning—he seized the underserved mid- and small-tier cities first, built scale, and attracted investment.

In fact, this strategy proved highly effective, as evidenced by Meituan's rise to the top of the group-buying industry.

Pei Yi gave Wang Xin no chance whatsoever—he pressed against Meituan's front, using KuaiPao's efficient operations, stable cash flow, and superior product performance to attack Meituan's weaknesses.

In just one week, Meituan's market share plummeted from first to second place; Dianping seized the opportunity and leapt to number one in the group-buying industry.

Meanwhile.

In a private club in Hongqiao, Shanghai.

Shen Nanpeng of Sequoia Capital, Zheng Qun of Google's Investment & M&A Division, Xu Xin of Today Capital, Ji Gang of Ali's Investment Division, and others sat together discussing recent changes in the group-buying market.

"Now that a disruptor has appeared, the 'fighting cocks' plan must pause; if we don't inject more capital into Meituan, Wang Xin will be forced out prematurely," said Shen Nanpeng of Sequoia, adjusting his glasses and looking at Ji Gang.

Among them, only Ali had invested in Meituan, with a stake exceeding KuaiPao's.

"Sorry, Boss Shen, Ali won't get involved. Chen Yan doesn't care about costs when fighting for market share—he's already sunk seven billion yuan into the express delivery sector through losses and acquisitions. Ali can't afford that much."

Ji Gang spread his hands and firmly declined Shen Nanpeng's proposal.

Zheng Qun and Xu Xin exchanged glances; they were major investors in Dianping, and KuaiPao's entry into group buying and its price war clearly threatened their interests.

Shen Nanpeng frowned inwardly: If Ali won't pay, why are you even here?

Ji Gang chuckled awkwardly, eyes downcast, playing the role of an outsider.

"Boss Shen, what's your idea?" asked Xu Xin of Today Capital, sipping her tea with a faint smile.

Shen Nanpeng had initiated this meeting—he must have come prepared.

"Merge Meituan with Dianping, consolidate resources, and respond to KuaiPao's challenge," Shen Nanpeng replied calmly.

"Will Wang Xin agree?" Ji Gang interjected.

"I can convince Zhang Tao to accept this plan," Shen Nanpeng said, looking at Ji Gang with full confidence.

"I disagree with the merger. Dianping's momentum in first-tier cities is strong—who will win is still uncertain," said Xu Xin of Today Capital, coldly dismissing Shen Nanpeng.

At this moment, Dianping was the industry leader—she had no reason to fund Shen Nanpeng's investment.

"Boss Shen, sorry, I can't support the merger—it doesn't align with Google's interests," said Zheng Qun, shrugging helplessly.

Seeing this, Shen Nanpeng realized the plan was dead. Suppressing his anger, he exchanged brief words with them and quickly left.

"It seems Meituan's market share has dropped sharply—otherwise, Shen Nanpeng wouldn't be so desperate," said Xu Xin with a chuckle, speaking pointedly in front of Ji Gang, Zheng Qun, and others.

Ji Gang and Zheng Qun said nothing, each lost in their own thoughts, and gradually left the club.

Shen Nanpeng's first merger discussion ended in failure, without even reaching details.

Ji Gang and Zheng Qun heard this but said nothing; each lost in their own thoughts, they left the club one after another.

Shen Nanpeng's first merger discussion ended in failure without even delving into the details.

In the top-floor office of Building 9, Zhuxianzhuang Technology Park.

KuaiPao's group-buying business (including Nuomi data) achieved total sales of 110 million last week, a 46. % week-over-week increase, ranking fourth in the industry…

After reading Pei Yi's work email, Chen Yan realized just how rotten Nuomi's organizational structure and field team were—its third- and fourth-tier markets relied entirely on agents.

Lose the agents, and market share would plummet by 60 to 70 percent.

Pei Yi dared not make sweeping changes, fearing chaos; instead, he slowly replaced agents with reserve managers trained under the "Thousand People, Hundred Cities" program, gradually reclaiming merchant and campaign management authority along East, North, and South China.

"No wonder Chen Yizhou lost over 300 million U. . dollars a year—when it comes to risk control and management flaws, only Cheng Wei can match him."

Pei Yi dared not make sweeping corrections, fearing chaos, so he proceeded step by step, using the reserve managers cultivated by the "Thousand People, Hundred Cities" plan to gradually replace agents along the East China, North China, and South China regions, reclaiming control over merchant and event management permissions.

The second email came from Yan Peng, Director of Orange Tech's E-commerce Division, summarizing sales data: new products, plus sales figures for Orange C1, C2, and D1, and progress in the East African market.

The Orange C3 and Qingcheng D1S had been on sale for eleven days, selling 1. 9 million and 3. 2 million units respectively—totaling 5. 1 million units, with total revenue of 8. 7 billion yuan.

But as the market saturated, daily sales over the past two days had dropped to around 170, 00 units.

After all, China's domestic market in 2012 was only this big; further growth required going overseas.

For overseas markets, Chen Yan had entrusted Zhou Shouzhi with overall management.

Suddenly, his desk phone rang. Chen Yan glanced at it—it was Zhou Hongyi again. He didn't need to guess; he knew exactly what the man wanted.

(PS: In 2012, total smartphone shipments in China were 210 million; including feature phones, 360 million.)

Suddenly, the phone on the table rang; Chen Yansen glanced at it—it was Zhou Hongyi again. He didn't even need to guess to know the man's intent.

(PS: In 2012, smart phone shipments in China ranked at 210 million, and including feature phones, the total was 360 million.)

(End of chapter)

End of Chapter

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