Analysis of Meituans Merger of Dianping: Stylized Facts, Challenges and Outlook

Abstract

Facing external and internal challenges, Meituan merged with Dianping in 2015 and Meituan has grown to be the leading company among online to offline (O2O) lifestyle service platforms. The paper selects the case of Meituans merger of Dianping and studies the motivation and effectiveness of the deal through analyzing the statistics and public information. The paper concentrates on the analysis of disclosed financial reports and includes challenges and objective statement, analysis of advantages and disadvantages and also future prospects. In brief, it is found that Meituan succeeded in increasing revenue after the merger according to the paper. Nevertheless, Meituan still had difficult in making profit as it conducted low-price strategy. The paper also analyzes the stylized facts and gives out future prospects of Meituan. Moreover, this case can bring enlightenment and inspiration to decision-makers whose companies are facing similar challenges. However, for investors, the paper can serve as reference if they plan to invest in the stock of Meituan.