Ele.me Fresh might become the next 'Meituan Taxi'

Against the backdrop of profound changes in the retail model, both online and offline players need a transformation and upgrade to stay at the table.

Whether it's MINISO's massive acquisition of Yonghui Superstores or Meituan's aggressive push into the Xiaoxiang Supermarket project, both are direct manifestations of this phenomenon.

However, just as MINISO's acquisition of Yonghui Superstores was not well-received by the public, Xiaoxiang Supermarket, which Meituan has high hopes for, is likely to meet the same fate.

If we were to summarize and define Meituan's current moves in the new retail model, it's more like its foray into the ride-hailing sector during the fierce competition—still sticking to its old playbook.

While Meituan's Xiaoxiang Supermarket may yield short-term results, in the long run, as competition in this new retail model intensifies, Xiaoxiang Supermarket will not only fail to become a new growth driver for Meituan but could even lead it into a dead end.

To summarize and define Xiaoxiang Supermarket, it's akin to Meituan's acquisition of Mobike and its ride-hailing venture—starting with a bang but ending in obscurity.

I

Meituan's Xiaoxiang Supermarket follows the same trajectory and carries the same scent.

That is, Meituan is merely leveraging its delivery advantages without truly touching the "soul" of the new retail model.

Some might argue that Meituan's Xiaoxiang Supermarket isn't just about delivery—it also has its own warehouses.

Even so, Meituan still falls short of meeting the demands of the new retail model.

The reason is that the ongoing transformation in retail isn't just about warehousing and logistics but more about enhancing the user experience.

What users truly need is a new model that bridges the gaps of offline supermarkets and online e-commerce, not just Meituan's so-called "new model" focused on warehousing and logistics.

Meituan might gain some traction initially through promotions, but once subsidies dry up and users realize Xiaoxiang Supermarket's offerings don't meet their needs, its popularity will plummet, and it will fade into obscurity.

Some might say Meituan can offset its warehousing shortcomings by empowering offline supermarkets with traffic.

However, it's worth noting that for Meituan, offline supermarkets are also a source of traffic.

From this analysis, whether it's Meituan building its own warehouses or empowering offline stores with traffic, it's still sticking to its old traffic-driven approach, not innovating the retail model or addressing new user needs.

While this might bring short-term gains, once subsidies become unsustainable, Meituan will find itself in another predicament.

II

If the unchanged traffic mindset dooms Xiaoxiang Supermarket to the same fate as Meituan's ride-hailing and bike-sharing ventures,

then Meituan's stubborn adherence to the platform model—without finding the right way to integrate with physical retail—is the key reason its Xiaoxiang Supermarket will inevitably hit a wall.

We all know that as the platform model reaches its limits, internet players are undergoing a transformation.

To summarize this shift, "de-platformization" is a major trend.

Meituan has recognized this trend.

For example, Wang Xing shifted Meituan's strategy from a platform-centric approach to "retail + tech" a few years ago.

Yet, despite this strategic shift, Meituan's actions show it's still clinging to the platform model, trapped in the same old cycle.

Xiaoxiang Supermarket is a clear example of Meituan's stubborn platform-centric mindset.

Why?

Because whether it's building warehouses or empowering small retailers with traffic, Meituan remains a middleman platform, not a true retailer, and fails to deliver a seamless online-to-offline experience.

As long as Meituan clings to the platform model and fails to revolutionize traditional retail, its attempt to carve out a share of the new retail market with Xiaoxiang Supermarket will face insurmountable challenges.

III

The unchanged traffic mindset and obsession with the platform model will turn Xiaoxiang Supermarket into the next Meituan ride-hailing.

Similarly, Meituan's inability to redefine its role and positioning will lead it into an even bigger crisis.

There's no denying Meituan's strong logistics and delivery capabilities.

This advantage allows it to venture into instant retail, intra-city delivery, and other businesses, while its platform traffic lets it expand into ride-hailing, community group buying, and more.

Meituan's "do everything" approach stems from its self-perception as a third party, not as a true player in new industries or retail.

This positioning hasn't changed much since the internet era.

While this model can drive growth through scale, once it hits a ceiling, Meituan will find itself stuck again.

From this perspective, Xiaoxiang Supermarket follows the same pattern as Meituan's Mobike acquisition and ride-hailing venture.

If Meituan continues to see itself as a third-party platform without integrating with upstream industries, it will struggle to unlock new growth and remain trapped in its old dilemmas.

As platform players like Alibaba, JD.com, and Pinduoduo increasingly integrate with industries and digital-physical fusion deepens, Meituan must abandon its pure-platform mindset and fully immerse itself in industry development to reach new heights.

If it fails to change, Xiaoxiang Supermarket will be just another short-lived experiment, like its bike-sharing and community group-buying ventures, unable to solve Meituan's core challenges.

Conclusion

As the retail industry undergoes transformation, Meituan, eager as ever, has jumped into the fray—just like it did with ride-hailing and community group buying.

Yet, its approach with Xiaoxiang Supermarket shows no innovation, just a repeat of old tactics.

For Meituan, this might bring short-term gains.

But once the initial buzz fades, Xiaoxiang Supermarket will likely follow Mobike and Meituan ride-hailing into obscurity.

At its core, this stems from Meituan's fixation on traffic, its platform obsession, and its failure to redefine its role.

Unless Meituan changes, Xiaoxiang Supermarket won't be a retail revolution—it'll just be another "Meituan ride-hailing."$MEITUAN(03690.HK)