Does a monopoly lead to worse user experience?

Meituan-Dianping is slowly gaining popularity in ride-hailing

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Chinese people’s aspiration for a better life needs to be secured by two ride-hailing platforms.

– Wang Huiwen, Senior Vice President, Meituan-Dianping

The words of Wang were delivered shortly after Meituan-Dianping, China’s largest e-commerce platform, recently tussled for market share with Didi in its own game of ride-hailing.

Wang Huiwen spoke at a local conference, explaining how the best time to enter a monopolised market is when the dominating party has not utilised its capital to benefit the users substantially, creating an opening for another party to compete.

With $1 billion yuan (approximately US$160 million) in capital at their disposal for its ride-hailing arm, Meituan is slowly eating into Didi’s market share, dishing out greater benefits for drivers and discounts for passengers. Its service has already launched in Nanjing and Shanghai with great popularity.