Meituan, China’s leading O2O and e-commerce platform, is triggering a subsidy war as it is making a foray into the ride-hailing sector, offering users an average RMB 20 ($3) subsidy per order, local media reports.

Offering subsidies may be the easiest and the most effective way for Meituan to secure a larger user base as it expands in the field where Didi Chuxing pretty much dominates the market. Meituan has already started its subsidy policy. In December 2017, users who had completed eight orders could be rewarded RMB 60 ($9.22), and those completing 13 orders could receive RMB 100 ($15.37). Meituan also offers some other subsidies during peak hours.

Meituan is ambitiously expanding and has announced in December 2017 that the firm had a team of over 200 employees to run its ride-hailing business. After its first testing in Nanjing that began in February last year, Meituan plans to roll out the service in seven other cities, including Beijing, Shanghai, Chengdu, Hangzhou, Fuzhou, Wenzhou, and Xiamen.

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Timmy Shen

Timmy Shen is a technology reporter based in Beijing. He's passionate about photography, education, food and all things tech. Send tips and feedback to timmyshen@technode.com or follow him on twitter at...