Meituan Suspends "Tuán Hǎo Huò" After Years of Leveraging Food Delivery for E-commerce Growth

Deep News12-15

On December 15, Meituan announced internally that it will suspend its "Tuán Hǎo Huò" business, shifting focus to exploring new retail models.

Tuán Hǎo Huò, Meituan's self-developed B2C e-commerce platform, was launched as a mini-program in August 2020 and later upgraded to a primary entry on the Meituan app in December 2020 before rebranding as Meituan E-commerce.

An internal memo stated that while the business accumulated retail experience as an early e-commerce experiment, evolving consumer demands in the instant retail sector made it difficult for traditional parcel-based e-commerce to compete. "We will proactively adapt to market trends," the memo noted. The company also assured employees affected by the restructuring that detailed transition plans would be communicated.

This year, Meituan has intensified efforts to innovate its retail strategy. Its Q3 earnings report highlighted strong growth in its grocery retail segment. In June, Meituan announced plans to expand instant retail services, including broadening product categories under its "Shan Gou" (flash sale) business and scaling its "Xiaoxiang Supermarket" to all Tier 1 and 2 cities. Currently, Xiaoxiang Supermarket operates in over 30 cities, including Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan, Nanjing, and Xi'an.

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