This week’s Meituan-Dianping merger may mean the end of another Alibaba-Tencent rivalry, but Baidu is feeling the pressure with stock falling just over 8% since the announcement on Wednesday.

The new Ali-Tencent-backed company will form a formidable force in the O2O market, competing directly with Baidu’s biggest platform investment, Nuomi. Before the latest merger, Nuomi had a 13.6% market share, trailing Tencent-backed Dianping who accounted for almost 30%.

This year has seen Baidu become an aggressive O2O investor, shoveling funds into their affiliated platforms, including $3.2 billion USD in Nuomi, hoping to lock down consumers before the market saturates.

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Cate Cadell

Cate is a tech writer. She worked as a journalist in Australia, Mongolia and Myanmar. You can reach her (in Chinese or English) at: @catecadell or catecadell@technode.com