Alipay entry may lose its reputation. Alibaba supports Ele.me takeaway pattern to change

　　Competition in the local life service market is intensifying. It is understood that the entrance to Alipay 's reputation will be replaced by Ele.me. Although Kou Word-in-Let’s deny this revelation, it also reflects the transformation of local life services toward the trend of takeaway services. Some analysts pointed out that Alibaba's support for Ele.me will also cause considerable changes to the takeaway market.

　　Loss flow entry

　　On August 13, the entrance to the payment platform Alipay for Word of Mouth Network will be replaced by Ele.me. "Ele.me and Alipay platforms will be opened soon. Although the change time cannot be confirmed, the second entrance on the Alipay page will soon become 'Ele.me'," said an insider.

　　Zhu Yishi, the public relations director of Word of Mouth Network, said that Word of Mouth Network has not changed its entrance to Alipay. In addition, Zhu Yishi also believes that Alipay is one of the important traffic entrances of Word of Mouth Network. The most important position of interaction between Word of Mouth and consumers is currently in the Alipay App. Recently, Alipay announced that the number of active users on the platform was 450 million. Chen Liteng, an analyst at the life service of the China E-Commerce Research Center, believes that if word of mouth loses its entrance on Alipay, it is equivalent to losing a large number of users.

　　In addition, Lu Zhenwang, an e-commerce industry expert and CEO of Shanghai Wanqing Business Consulting Co., Ltd., said that word-of-mouth network has a very small share in the life service market. Losing Alipay ’s traffic port will not cause major changes to the market structure, but it will be a blow to word-of-mouth traffic. In addition, from Ele.me's perspective, obtaining the Alipay homepage will bring a lot of traffic, which will have a significant impact on the takeaway market structure.

　　Repeat the same mistake

　　Koubei.com was established in 2004, with only 80,000 yuan in start-up capital at the beginning of its business. It is reported that in 2006, Alibaba acquired Koubei.com for US$5 million to US$6 million. Alibaba hopes Koubei.com can become an indispensable part of netizens' online work, consumption and life. Some industry insiders said that Word of Mouth Network is volatile in the positioning of catering and classified information, and ultimately loses its competitiveness.

　　Until 2015, Alibaba Group and its subsidiary Ant Financial announced that the two parties each invested 3 billion yuan, with a total of 6 billion yuan to establish a local life service platform company "reputation of reputation". At the beginning of this year, Alibaba released its third-quarter financial report for fiscal year 2017 as of December 31, 2016, which disclosed that its platform "reputation" has completed a round of US$1.1 billion in financing. It is understood that the leading investors in this round of financing include Yinhu Capital, CITIC Capital, Yunfeng Fund, and Chunhua Capital.

　　Reputation data shows that after one and a half years of development, the number of merchants on the platform has exceeded 1.5 million, and the number of transactions has exceeded 15 million per day. Data disclosed in Alibaba's financial report shows that in the fourth quarter of 2016, the reputation GMV was 73.1 billion yuan, a month-on-month increase of 52%. The annual GMV of 2016 was 173.1 billion yuan.

　　Lu Zhenwang believes that local life service platforms pay more attention to takeaway services. On the contrary, group buying, payment discounts, etc. are gradually fading, which is no longer the mainstream trend of consumers.

　　Has the takeaway pattern changed?

　　Word of mouth has received multiple investments from Alibaba. After the takeaway platform Ele.me obtained investment from Alibaba, rumors of merger between the two have never stopped.

　　In this regard, Lu Zhenwang analyzed that there have been rumors before that Alibaba has been increasing its investment in Ele.me, and Ele.me’s Alipay’s consumption transaction volume has grown rapidly, and it will also receive attention and support from Alipay. In addition, "it will not be difficult to integrate offline restaurant services with Ele.me as the entrance," Lu Zhenwang admitted.

　　The online takeaway market has maintained rapid growth for a long time, and the competition between Ele.me and Meituan Dianping has gradually become increasingly fierce. Cao Lei, director of the China E-Commerce Research Center, said that Alipay combined with Ele.me’s combination will jointly fight against New Meida. The Alipay platform has hundreds of "entry", and it remains to be considered whether Ele.me can successfully attract traffic on Alipay and will not have much impact in the short term.

　　Regarding the future development of Kou Word-in-Link, Zhu Yishi said that the company has not yet considered the monetization of traffic. At present, the company will also focus on polishing products to better serve merchants and consumers.

　　Chen Liteng analyzed that Alipay, as an important source of traffic, is the entrance to many applications. For the reputation established in 2004, it has passed the best period for traffic monetization. Even if reputation loses the entrance to Alipay, its development will be greatly affected, but reputation still has development prospects. Chen Liteng believes that past development data shows that the number of daily trading volumes of reputation is still very high. Replacement of Alipay's portal will slow down user growth, but the accumulated users are stable. Word of mouth can be used as an entrance to other platforms to generate more traffic through existing traffic.

　　In October last year, according to data disclosed by Alipay's word-of-mouth, during the National Day holiday, the number of users using Alipay's word-of-mouth consumption reached about 40 million, a 4-fold increase year-on-year; transaction amount increased by nearly 9-fold year-on-year. In addition, Chen Liteng said that the basic business of popular life services has been discovered. In the future life service market, personalized and customized life services may be a try point, with low frequency (small user base) but high service costs, which can mainly serve mid-to-high-end people. However, he also reminded that the mid-to-high-end market is not easy to do, and users will have higher requirements for all aspects of the platform.

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