Meituan made a big deal and took out 1.1 billion to subsidize riders

Mondo Finance Updated on 2024-02-27

Meituan gave riders a 1.1 billion return-to-work subsidy

The Lantern Festival has passed, and it is believed that most of the migrant workers have returned to work and received their own company's starting benefits.

Last week, many migrant workers posted their company's start-up benefits on social platforms, which attracted widespread attention.

For example, Tencent gave employees a surprise of at least 400 yuan per person with its unique online random red envelope activityLei Jun, the founder of Xiaomi Group, personally presented red envelopes to employees, showing his pro-people and generous sideAlibaba's employees received a kick-off gift that included a "talisman" pendant, plant seeds, and snack packsXiaohongshu has ingeniously issued shopping coupons called "potato coupons" for employees to choose their favorite products and ...... in Xiaohongshu**

Source: Xiaohongshu app

In addition to these distinctive Internet companies, Meituan has made great efforts in terms of start-up benefits.

Since the resumption of work after the holiday, in order to help riders return to work,Meituan Delivery has invested 1.1 billion yuan in return-to-work subsidies to riders, and launched exclusive ticket discount activities to facilitate riders' return to work. According to the data, the number of active Meituan riders nationwide has increased by 130% month-on-month compared with the Spring Festival holiday.

From the perspective of form, the back-to-work subsidy will be distributed to riders in the form of a series of colorful activities such as New Year's running order gifts, sign-in awards, etc.

From the fourth day of the Lunar New Year to the Lantern Festival, riders who actively participate in the event can win up to nearly 2,000 yuan in generous rewards.

As the festival ended, Meituan has stepped up its investment in recruiting new recruits, and riders can receive up to 6,000 yuan for each new recruit they successfully invite.

In addition, Meituan has also actively cooperated with well-known domestic civil aviation companies such as Hainan Airlines, Sichuan Airlines, and Tianjin Airlines to jointly launch a special ticket care policy during the Spring Festival travel period, which provides convenience for a large number of riders to return to work smoothly after the New Year.

It is understood that riders can book air tickets for themselves and their families through the Meituan app, and can enjoy a minimum discount of 2%.

Source: Meituan.

Not only that, but under the first stage, Meituan distribution sites across the country carried out a series of activities to resume work at the beginning of the year, distributing red envelopes to riders and organizing New Year's dinners to cheer for riders' work in the new year.

From these initiatives, it is not difficult to see that Meituan's attention and care for riders has reached an unprecedented height. By providing generous subsidies and comprehensive logistical support, Meituan not only responds to the hard work of its riders, but also shows its deep care and respect for the riders as a group.

Of course, the core purpose of Meituan's adoption of such a large subsidy measure is that the rapid growth of post-holiday takeaway orders has higher requirements for transportation capacity guarantee.

In the words of the person in charge of Meituan's delivery, Meituan will continue to provide logistical support for riders to return to work, accelerate the recovery of transportation capacity after the holiday, and provide support for takeaway consumption.

It is worth noting that Meituan's care and support for riders is not limited to the post-Chinese New Year period. On the eve of the Chinese New Year, Meituan has implemented a corresponding subsidy policy to ensure that riders can also get their due rewards during the festival.

In January this year, Meituan Delivery held Spring Festival celebrations in nearly 100 cities across the country, including riders' Chinese New Year's Eve dinner, cultural-themed flash mobs and honorary recognition, and at the same time invested in special subsidies for job stabilization during the Spring Festival to ensure that the maximum additional income of riders staying on the job exceeded 10,000 yuan and ensured the stability of transportation capacity during the Spring Festival.

From ensuring that riders stay on the job to helping riders return to work smoothly, Meituan has comprehensively protected the rights and interests of riders through two subsidy policies, demonstrating the platform's attention and consideration for riders.

As the saying goes, "the world is bustling, all for profit; In order to attract and stabilize a large team of riders, money is undoubtedly the most direct and efficient means of incentive.

Data shows that in 2017, the number of Meituan delivery riders was 2.2 million, and in 2022, the number of riders has nearly tripled to 6.24 million, and as of the first quarter of last year, the number of Meituan delivery riders has exceeded 7 million, and the number is still growing.

Source: Titanium**.

From this perspective, Meituan's investment in retention and return-to-work subsidies is clearly a strategic investment in its large team of riders, and it is an approach that focuses on rider welfare while taking into account commercial benefits.

Rider benefits have been upgraded, and platform competition has intensified

As we all know, valuing riders is the consensus of the entire industry.

As Meituan's "old rival", Ele.me will naturally not bow down in this contest of rider welfare.

More than a month ago, Ele.me announced that it would spend 1 billion yuan to increase rider rewards and launch four major measures of "three increases and one supplement"; During the Spring Festival, they not only prepared reunion dinners, gift packages and transportation rights for the riders, but also joined hands with the labor union and the commerce department to jointly distribute materials and condolences to the riders. In addition, Ele.me has also launched a newcomer subsidy policy to encourage riders to recommend newcomers, with a maximum reward of 5,000 yuan in Shanghai.

Source: Taishan Guild***

This series of measures not only further strengthens Ele.me's rider team, but also injects new vitality into the sustainable and stable development of its business.

For Ele.me and Meituan, the riders are their right-hand men on the local life track, and they are the moat to stabilize their market position and build a competitive advantage.

For them, only by continuously strengthening the investment and care of riders can they ensure their loyalty and motivation to work, and win a larger market space in the local life industry.

But, then again, the industry quickly fell into a surplus due to the surge in rider numbers.

The data shows that the overall income of food delivery riders has shown a downward trend in recent years. In the past, at the peak of income, about 8% of riders were able to earn more than 10,000 yuan a month, but now this proportion has plummeted to about 3%. More worryingly, about half of the riders earn between 4,000 and 6,000 yuan a month.

Maintaining the previously high income levels has become a daunting challenge for food delivery riders.

In view of the current situation of general decline in riders' income, Ele.me and Meituan not only need to increase the subsidy for riders, but also increase the unit price of delivery, so as to truly and effectively increase the income level of riders.

Only by continuing to pay attention to riders, a key part of local life, and building a solid capacity moat through long-term investment, can the platform win the long-term favor of the market and the continuous trust of users, so as to remain invincible in the industry competition.

What is the local life platform spelling?

There is a good saying, "One trick is eaten all over the world". For local life platforms, rider resources are like their unique skills, which can indeed give them a place in the market.

However, today's market has long gone beyond relying solely on a single advantage, and the situation of relying on riders to fight the world is "gone".

Because of this, even if Meituan has the best rider resources, it still needs to compete with Douyin, a "newcomer" in local life, to attract merchants and users by lowering deduction points, and to innovate the food delivery live broadcast business to meet the needs of users to achieve greater wins.

In other words, with the increasing diversity of local life needs, in order to win in the fierce competition, it is not enough to rely on the millions of riders on various platforms, and the roles of merchants and users are equally crucial.

In this context, Meituan, Ele.me, Douyin, Kuaishou and other platforms have been in close proximity, and a comprehensive battle for the three core resources of riders, merchants and users has officially kicked off. All parties have shown their hole cards, trying to seize the opportunity in this fierce competition and win the dominance of the market.

For a time, the local living market has become a battlefield filled with gunpowder, with fierce competition.

However, "a wise man thinks a thousand times, and he will make a mistake; A fool is wrong for a thousand times, and there must be a pair. "In this battle, who will have the last laugh depends on the wisdom and strategy of all parties.

It is foreseeable that the balance of victory will be tilted in favor of platforms that are keenly aware of market trends, agile in response to changes, and continue to innovate and break new ground. These platforms will occupy more advantages in the fierce market competition and open a new chapter of more exciting local life.

Author |Li Xiang.

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