Ele.me enters another round of money-burning

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Ele.me to Spend More Than $440 Million to Seize Turf– Caixin Global

What happened: Chinese online food delivery giant Ele.me is planning to spend more than $440 million from July to September to expand its market share in the hope to increase its market share to over 50%.

Why it’s important: The subsidy and marketing war between Chinese online food delivery giants is reaching a feverish pitch. The sector has undergone major shakeups last year when Ele.me purchased Baidu’s food delivery service Baidu Waimai, shrinking the market to just two top players. Ele.me’s arch competitor Meituan is planning an IPO in Hong Kong.