Date
26 September 2017
China's food takeout market is expected to be worth 70 billion yuan a year in three years. Photo: Bloomberg
China's food takeout market is expected to be worth 70 billion yuan a year in three years. Photo: Bloomberg

Dianping takes a bite of China food takeout market

Dianping.com, a Shanghai-based restaurant review and coupon website, has announced plans to invest in online food ordering platform Ele.me, which aims to go public within three years, Shanghai Daily reported Wednesday

A group led by Dianping will invest a total of US$80 million in Ele.me, which means “Are You Hungry?” in Chinese, the report said, citing a statement from the two firms.

With Dianping’s huge user base and restaurant resource, Ele.me’s daily order volume is expected to hit 1 million next year compared with 100,000 orders now. Dianping’s service will cover 50,000 restaurants in 30 cities nationwide, including Shanghai and Beijing, after the Ele.me investment.

“Dianping plans to establish an open platform to offer best O2O, or online to offline, services to consumers,” the company’s vice president Jiang Yueping was quoted as saying.

China’s Food and restaurant consumption volume is expected to hit 700 billion yuan in 2016, up from 450 billion yuan last year. As the takeout service accounts for 10 percent of the total market, it means the segment will be worth 70 billion yuan (US$11.2 billion) a year, the report noted.

– Contact HKEJ [email protected]

SK/RC

EJI Weekly Newsletter

Please click here to unsubscribe