Stronger by Paying Salaries and I Have 1 Billion Employees

After hanging up, Pei Yi immediately pulled the supervisors from Kuai Pao’s Yanjing operations, marketing, ground-promotion business, and events teams into a big meeting.

In short, whether for the group-buy or food delivery business, they would max out all subsidies and promotions, aiming to ’crush’ Meituan in a price war.

For group buys, every new customer would receive a 10-yuan coupon with no minimum spending requirement, and existing customers would get a 5-yuan no-minimum coupon every day.

They would hold four flash sales a day—for 1 yuan and 9.9 yuan—at 10 AM, 12 PM, 6 PM, and 8 PM, to keep users locked into the Kuai Pao app.

New food delivery customers would get an instant 15-yuan discount, matching Meituan’s offer.

Strategically, it was clear that Pei Yi’s approach was identical to the tactics Liu Qiangdong had used against Dangdang. While stabilizing the food delivery market, he would use high subsidies and zero-profit marketing to rapidly eat away at Meituan’s group-buy market share.

”Kuai Pao’s subsidies won’t stop until Meituan exits the market.”

Pei Yi gave the order to the heads of the East China and North China Regions. This time, they were going to drive Meituan into the ground.

For merchants, they adopted a two-pronged approach of low commissions and commission-free periods. If a Meituan KA (Key Account) merchant was willing to sign an exclusive ”choose one of two” agreement, Kuai Pao would grant them a three-month commission-free period.

This would cut off Meituan’s lifeline at the source.

Once Kuai Pao’s subsidy war began, Lashou, Dianping, and WoWo Group were caught in the crossfire. They suffered a massive loss of users, who all flocked to Kuai Pao for the discounts.

That afternoon, Lashou Network formally announced that, effective immediately, their product would be renamed Qian Du Lashou Network.

They also made a high-profile entry into the subsidy war, offering extremely generous promotional policies for both new and existing customers.

Dianping’s Zhang Tao cursed under his breath, ”Another shit-stirrer has arrived!”

After cursing, Dianping also quietly adjusted its subsidies for new and existing customers to prevent losing market share.

Only WoWo Group’s Wang Yunming was truly out of money. Desperate to make a profit, he had even dabbled in e-commerce. How could he have any spare cash to fight Kuai Pao, Lashou, and Meituan?

As a result, the market shares of Kuai Pao, Lashou, and Meituan all rose, while WoWo Group gradually faded into silence.

In addition, Kuai Pao and Nuomi Network accelerated their business merger. Pei Yi also dispatched the employees trained under the ”Thousand Talents, Hundred Cities” plan to the small and medium-sized cities where Meituan’s influence was most concentrated, engaging them in a direct confrontation.

The reason Wang Xin had been able to emerge victorious from the ”Thousand-Group-Buy War” was not just his powerful ground-promotion team; his precise market positioning was also a major factor. He was the first to seize the small and medium-sized cities that everyone else looked down on, creating economies of scale to attract investment.

In fact, this strategy had been remarkably effective, as evidenced by Meituan’s rise to the top spot in the group-buy industry.

But Pei Yi gave Wang Xin no chance at all. He stuck to Meituan like glue, using Kuai Pao’s efficient operational system, stable cash flow, and superior product performance—playing his strengths against Meituan’s weaknesses.

In just one week, Meituan’s market share fell from first to second in the industry. Dianping picked up the slack, leaping into the top spot in the group-buy sector.

At the same time.

「In a private club in Hu City’s Hongqiao.」

Shen Nanpeng of Redwood Capital, Zheng Qun, the director of Google’s investment and M&A department, Xu Xin of Today Capital, and Ji Gang from Ah Li’s investment department were all gathered together, discussing the recent changes in the group-buy market.

”Now that a spoiler has entered the game, the ’Gu-raising’ plan has to come to an end. If we don’t give Meituan another cash infusion, I’m afraid Wang Xin will be knocked out of the game early,” Shen Nanpeng of Redwood Capital said, pushing up his glasses and looking at Ji Gang.

Among this group, only Ah Li had also invested in Meituan, holding an even larger stake in it than it did in Kuai Pao.