Di Yi Cai Jing·2025-06-23 11:37Core Viewpoint - Meituan's community group buying business, Meituan Youxuan, has been suspended and is undergoing a strategic transformation, reflecting a broader industry trend of declining interest in community group buying as companies shift focus to new opportunities [1][5][10]. Business Suspension and Adjustment - Meituan confirmed the suspension of Meituan Youxuan's operations, with affected regions including Fujian, Hubei, Sichuan, Jiangsu, and Beijing, and stated that the service will be paused due to business adjustments [1][5]. - The announcement was unexpected for users and "group leaders," with reports of service cessation without prior explanation [2][5]. - Internally, Meituan plans to focus on leveraging its supply chain and logistics network, exploring new retail models, and ensuring no layoffs for existing employees [5][6]. Industry Trends and Shifts - The adjustment in Meituan's strategy is seen as a move towards reducing intermediary roles and shifting to a B2C e-commerce model, with a potential decrease in self-pickup options [6][10]. - The community group buying sector has faced significant challenges, with many platforms, including Meituan, experiencing continuous losses and a shift in focus towards instant retail and overseas markets [7][11]. - The community group buying model has been under pressure due to increased competition and a shrinking user base, particularly among older demographics [10]. Financial Performance - Meituan's new business segment, which includes Meituan Youxuan, reported substantial losses, with Q1 2021 losses reaching 80.4 billion yuan, a year-on-year increase of 489.9% [9]. - Despite some efficiency improvements in 2023, the losses and loss rates remain significant, attributed to slower-than-expected growth and intense market competition [10]. Future Outlook - Meituan plans to adjust its strategy for community group buying in 2024, focusing on reducing operational losses and improving the business model, while shifting away from an emphasis on market share [10]. - The industry expert suggests that instant retail may prove to be a more sustainable and profitable model compared to community group buying, as evidenced by the growth of platforms like Meituan Shanguo [11].