The timing couldn’t be more perfect for Meituan to launch their ride hailing app again.
On Friday Meituan announced that they are re launching Meituan Dache right after apps of Didi Chuxing were barred from accepting new users and were removed from app stores.
The Meituan Dache app was launched in February 2017 and was merged into Meituan App in April 2019. Within 10 days after Meituan launched its car-hailing service in 2018 in Shanghai it captured one-third of the local market, media reported.
In June 2019 Meituan Dache was removed from app stores in order to control costs following sustained losses according to the company. The ride-hailing app of Meituan served as an integration platform that accommodated other ride-hailing companies.
China is now the world’s largest car-hailing market. The country accounted for 13.1 percent of global ride-hailing consumption in 2020, with a market size of 5.7 trillion yuan ($879.8 billion), and is expected to grow at a compound annual growth rate of 13.1 percent to reach 10.6 trillion yuan by 2025, according to a report by TF Securities.
Didi Chuxing app accounted for about 90 percent of active users in ride-hailing in October 2020, with 77.755 million active users, the report shows. Meituan will try to change this