Why Did Ali Buy Baidu Takeaway For $800 Million? War Of Payment For China's Internet Structure

Hungry, the takeover of Baidu takeaway has come to an end, but the total price is nearly $800 million, and the takeover bid of $500 million by Baidu has been puzzled by many people in the industry.

The core question is Baidu takeaway.

Few cities in Xiamen still have less than 10% of the market share, and the total share of nearly 100 cities nationwide is only 4-5%.

Many negotiations before Baidu takeaway were rejected because of declining share and high price. Why are Ali and hungry still willing to buy at a high price of nearly $800 million?

According to a number of people close to the paction, Ali's intention was to close the relationship with Baidu and pull Baidu into his own camp, together with the Tencent.

The idea of Baidu getting into its own camp has long been available, but even though Baidu is now down, its surface is still unable to accept the relationship between Ali and the Baidu takeaway.

How much attention has been paid to Ali? In the official news release that starved to buy Baidu takeaway, Cai Chongxin, executive vice president of Alibaba group, responded in person, saying: "Ali has achieved strategic cooperation with hungry for a year, which has created great value for both users.

Hungry, the market position established so far has also proved the excellent strategic vision and executive power of the management team.

Ali supports the hunger to integrate the takeaway market, believing that Baidu will take the lead in consolidating the takeaway after starving, and the group will continue to give strong support to the new platform in terms of traffic and financing.

Why does Ali want to cohere Baidu? Traffic and consumption scenarios seem to be the core reason. As we all know, traffic has always been the weakness of Ali, and social networking and search can not be done. Since the closure of Baidu traffic entry, Taobao's huge traffic demand relies heavily on cooperation between Ali and small and medium-sized network stations to invest in micro-blog and Youku, and Baidu's traffic and user consumption scenarios are exactly what Ali wants.

And WeChat pays huge user traffic and consumer scenarios. Alipay is also the pain of Ali.

With the release of the latest quarterly report, Ali and Tencent's market capitalization has exceeded 400 billion U.S. dollars. Although Ali has become a big Mac, the surface edge can not hide the limitations of Ali, and its core pain is payment - the hope of the next 100 billion market capitalization story.

Ali and Tencent two giants, the former high-profile, the latter pragmatic, after Alipay and WeChat competition has been bayonet.

According to iResearch data, Alipay still occupied nearly 80% of the market share in the mobile payment market in 2014, but it has dropped to slightly above 50% by the end of June this year.

Tencent's fortune paid market share rose to 40%.

Earlier, Alibaba and Tencent also appeared in the intersection of business, but all because of the gap between the strengths of the two sides were too wide, failed to ignite the flames of war.

But the field of payment has become an exception.

On the one hand, this is the core business of Ali's ecological layout in the long run.

On the other hand, WeChat payment based on social scenes has a high frequency advantage that Alipay can not achieve.

During the festival, the public opinion Carnival caused by WeChat's red envelope has proved this point.

WeChat pays step by step into Alipay's original market. Alibaba is in urgent need of more high-frequency trading scenarios to resist the impact of WeChat's social advantage.

In August, Alipay and WeChat paid for the monthly payment activities, giving preferential treatment and encouraging gold layer to compete for consumers' offline consumption.

Previously, any high-frequency trading area is a fierce battleground between the two sides.

Whether it is ofo and the red envelopes and concessions, and the dripping taxi coupons, the two sides fight for money is the payment link.

In the first half of August, Tencent said that its fortunes could grow rapidly. One of the reasons was that many businesses were added to the cooperation with the US group.

The huge local life service market is undoubtedly the most relevant field of payment links.

Dining, takeaway, home service, movie ticketing and so on all naturally meet the high frequency of payment, and they will also become the two big tycoons.

Yes

In terms of investment hunger, the resumption of word of mouth network, last year's huge stake in Yum China, is expanding the trading opportunities of local life services.

The operation is hungry, and Baidu takeaway is only a necessary step to face the strong enemy.

The war of payment is destined to have far-reaching influence on China's Internet structure.

And what Ali needs is

To win the battle against Tencent, what is the value of Ali to Baidu?

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