Aug 28, 2019 (China Knowledge) - Chinese online giant Meituan Dianping is set to re-enter the market for shared power bank services. This comes after Meituan’s first dip into the market in 2017, where the business was discontinued briefly after an unsuccessful initial pilot launch.
With the increasing penetration of smartphones within China, as well as the widespread usage of mobile payments in the recent years, the demand for shared power banks services among consumers have surged over the past few years. Charging stations can now be found in many high traffic locations, such as malls, restaurants and metro stations.
Chinese users of shared power banks are expected to reach 305 mln by the end of 2019, up from 196 mln in 2018, representing a growth of over 50%.
The increasing demand has no doubt been key in Meituan’s decision to re-enter the market. The company plans to set up charging stations across the country, with the power banks marketed in the famous yellow of Meituan’s logo.
However, the venture into the market by Meituan will likely be challenging. The current share power bank business is dominated by Jiedian, with more than 107 million reported users, representing a market share of 40.5%. Other key players include Xiaodian and Guaishou, with market shares of over 20% each.
If successful, Meituan will be able to expand its revenue sources, diversify its user base and increase the company’s growth in the future.
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