Wednesday, January 18, 2017

Food delivery apps in China/ Group menbers:Yu yun(1155081003) Lun lixin(1155081992) Sun li(1155084271) Chen ye(1155082031) Zhang Xuanting(1155082066)

Food delivery apps in China

Oligopoly
Three mainstream food delivery apps in China who shares similar market share
饿了吗 美团外卖 百度外卖
The market share of each app are shown in the chart below

Concentration in the market
The three apps totally take up 94.5% of the whole market share, so it is highly concentrated.

Product differentiation
They have similar product function and features basically providing food delivery services. But
-These three apps have different resources, Meituan food-delivery has more cooperated food-providers.
-The discount of the restaurants also differs in these three apps
-They have different spokesperson, Meituan food-delivery hires Yue yunpeng(a crosstalk comedian), Baidu food-delivery hires Liu shishi( a famous actor), E Le Me hires Wang zulan(a comedian) and Kobe(a basketball player). So they have brand image differentiation.

Barriers to entry
The barriers to entry the online food-delivery industry is high, because those three apps are already taken high market shares, and the market is mature, hard to get investment.
Difficult to find new niche, distinguishing yourself from the existed three mainstream apps.

Cost structures
-Fixed cost:
Cost of server; Rent
-Variable costs:
Delivery cost (equipment; hiring the deliveryman; oil…); Salary of the employees;

Vertical integration
They are starting to provide ingredients to the upper supply chain(restaurant)

Yu yun(1155081003)
Lun lixin(1155081992)
Sun li(1155084271)
Chen ye(1155082031)

Zhang Xuanting(1155082066)

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