Core Viewpoint - The competition in the local service market is intensifying, with Meituan facing challenges from Douyin and Alibaba, as they both seek to capture market share in the restaurant and local service sectors [2][5][42]. Group 1: Douyin's Entry and Impact - Douyin's entry into the local service market has significantly disrupted Meituan's growth, with Douyin's order volume surpassing Meituan's during promotional events [4][5]. - Douyin's aggressive marketing strategies, including live streaming and heavy subsidies, have attracted merchants and consumers alike, leading to rapid user growth [4][9]. - The competitive landscape has shifted, with Douyin's user base expanding quickly, putting pressure on Meituan to respond effectively [3][13]. Group 2: Meituan's Response Strategies - In response to Douyin's rise, Meituan has initiated several defensive strategies, including launching live streaming features and shifting to a direct sales model in lower-tier cities [25][27]. - Meituan's efforts to support merchants through subsidies and reduced commissions have helped maintain its market position, although this has come at a significant financial cost [30][31]. - The internal restructuring within Meituan aims to enhance operational efficiency and adapt to the changing market dynamics, with a focus on integrating its delivery and local service businesses [31][34]. Group 3: Alibaba's Involvement - Alibaba's recent entry into the local service market through Taobao and Gaode has introduced a new competitive element, potentially reshaping the market dynamics further [42][43]. - Gaode's "Street Ranking" feature aims to leverage user behavior data to provide a unique evaluation system, challenging the existing dominance of platforms like Dazhongdianping [48][50]. - The competition is evolving into a three-way battle, with Meituan, Douyin, and Alibaba all vying for market share, which could lead to increased pressure on Meituan's profitability [54][56]. Group 4: Market Dynamics and Future Outlook - The local service market remains attractive due to its higher profit margins compared to food delivery, prompting ongoing interest from various players [66][68]. - The competition is expected to continue intensifying, with new entrants and existing players exploring innovative strategies to capture consumer attention and market share [67][68]. - The evolving landscape suggests that the battle for dominance in the local service sector is far from over, with potential for further disruptions and shifts in market leadership [65][68].