Meituan Distribution Wei Wei： Instant delivery is the foundation of getting home, and the errands business has made great progress.

On the occasion of the first anniversary of the brand’s establishment, on May 19th, Meituan Distribution announced that it would upgrade its opening strategy, create more inclusive distribution services, and work with ecological partners to build new infrastructure in the future city.

When the epidemic struck, the instant delivery industry grew against the trend. During the epidemic, Meituan delivered 56.22 million orders to hospitals across the country, and at the same time absorbed 791,500 laborers to become take-away riders.

At the same time, new players such as Didi have also entered the errand business. In this regard, Wei Wei, general manager of Meituan Distribution, said that Meituan’s errand business has made great progress recently. Didi and Meituan are companies that like to try new things, and some people are willing to come in, indicating that the industry is still valuable.

With the implementation of the new national standard for motorcycles, Meituan has also cooperated with some energy companies. Will the rider’s transportation be unified in the future? Wei Wei mentioned that the rider’s means of transport is a part of the ecological chain and will actively cooperate with the government and enterprises.

Talking about Didi’s errand running industry: it shows that the industry still has value

In May 2019, Meituan Distribution was formally established as an independent brand, and announced the upgrade of the distribution open platform. Up to now, Meituan has 3.99 million platform active riders, covering 2,800 cities above the county level, covering more than 6.2 million categories of merchants such as restaurants, fresh food, supermarkets, bookstores and flowers.

Now, the first anniversary of the brand’s establishment, Wei Wei, general manager of Meituan Distribution, said that it will build more inclusive distribution services, digitally help 10 million stores, provide 200,000 deep distribution solutions, and continue to open up to the society to provide 3 million jobs.

During the epidemic, instant delivery became a busy industry. Wei Wei introduced that recently, the errand business has made great progress, and the epidemic has brought about changes in people’s consumption habits. On May 10th, Mother’s Day, the errand orders exceeded 1.17 million. The epidemic has made the home business and errands business press the speed-up button, and now the overall development is still very good.

For non-catering business, etc. Yang Fei, general manager of the customer department of Meituan distribution enterprise, said that we have indeed made many new attempts in catering and non-catering, and we are also expanding the upstream business flow, whether it is the expansion of flash shopping business categories or the internal Meituan shopping, including customers in various industries in the market. At present, the proportion of our non-catering categories is gradually increasing.

Many players have also started to enter the game. In March, Didi announced that it will run errands in 21 cities including Shanghai, Shenzhen and Chongqing, and the function of picking up and delivering parts in the same city will also be opened. Wei Wei told the Beijing News reporter that Didi and Meituan are both companies that like to try new things. From the perspective of business value, some people are willing to come in, indicating that this industry is still valuable.

For other players in the industry, Wei Wei said that from an internal perspective, competition is a very important factor to maintain internal vitality and innovation drive, so we don’t pay too much attention to competition, but pay more attention to what new value and plans we can bring.

The rider’s equipment is a part of the ecological chain.

What difficulties and challenges have the brand encountered since its establishment one year ago? Wei Wei introduced that the development of take-away business is demand-driven, and take-away is a closed-loop transaction at the performance end and an important end link. If there is no way to guarantee the delivery time and service experience of goods, the business model will not be established.

"The gross profit margin of retail is much lower than that of the catering industry, so the cost of supporting home must adopt a new distribution model to perform distribution in a more intensive way." Wei Wei believes that the biggest challenge is the joint construction of the digitalization of retailers and the digitalization of delivery performance of the whole platform. At present, it will take some time to polish, and our flash purchase business has also launched the "Little Picking Assistant".

The types of services such as Meituan distribution are constantly enriched. The data shows that the "cruise mode" of Meituan’s peer-to-peer distribution network reached 7.6 billion orders in 2019; "Galaxy mode" provides more customized in-store service, and the number of cooperative stores increases by 402.5%; Introduce the "warehouse-distribution integrated model" consisting of pre-small warehouse and distribution; Intelligent cupboards have been put into use in batches in Beijing, Shanghai and other cities.

Motorcycles also affect the distribution efficiency. In April 2019, the new national standard for motorcycles was officially implemented. At the same time, many enterprises have laid out "shared power exchange" business. Previously, Meituan Distribution signed a strategic cooperation with Tieta Energy. At present, 6,000 power exchange points have been laid in 150 cities across the country, which can serve nearly 160,000 riders every day.

Is the rider’s distribution and assembly unified? Wei Wei said that the new national standard for motorcycles must be actively supported from the distribution attitude of the US delegation, which is also a part of the ecological chain. It is necessary to actively cooperate with the government and enterprises, but the status quo needs an evolutionary process.

What impact will the 5G network construction bring to the distribution of the US Mission? Wei Wei believes that, firstly, 5G, AIoT and AI technologies are relatively advanced technologies, and 5G is the accelerator for the application of AI and AIoT technologies to the underlying network. At present, China is still in the process of infrastructure construction, and it will take a while. With the improvement of 5G technology capability, there will be a very large commercial application scenario for the minute-level distribution network of instant delivery in the future.

Beijing News reporter Chen Weicheng Editor Wang Jinyu proofread Junyan Zhang