Once a dominant player in China's food delivery market, Baidu Takeout now faces the disintegration of its founding team. The successive departures of core members have triggered a chain reaction, signaling the end of an era. This is not just the decline of a single company, but a microcosm of the dramatic changes in the food delivery landscape. Does Baidu Takeout's fall indicate an impending reshuffle in the market? As Meituan and Ele.me engage in fierce competition, how will emerging forces disrupt the status quo? This article provides an in-depth analysis of Baidu Takeout's decline, examines Alibaba's strategic acquisition of Ele.me, and explores future trends in the food delivery industry.
1. Mass Exodus of Baidu Takeout's Founding Team: Warning Signs of Decline
On the evening of March 16, Baidu Takeout Chairman (former CEO) Gong Zhenbing shared a song titled "Departure" on his WeChat Moments, prompting farewell messages from colleagues. This seemingly ordinary act concealed ominous signs of Baidu Takeout's decline. Exclusive reports reveal that Gong has officially resigned. Previously, former CTO Geng Yankun and former Vice President Chen Qing had already left. With these departures, nearly all core members of the founding team have exited, casting a shadow over Baidu Takeout's future.
Insiders widely view Gong's departure as a significant marker of Baidu Takeout's decline and a hint that its parent company Ele.me will soon be fully integrated into Alibaba's ecosystem. The mass exodus of the founding team results not just from personal career choices, but from multiple factors including corporate culture, strategic direction, and development prospects. Their departure takes away not only expertise and technology, but also the innovative spirit and entrepreneurial passion that once defined Baidu Takeout.
Industry observers considered Gong's resignation "only a matter of time." Since Ele.me acquired Baidu Takeout, rumors about executive departures have circulated constantly. Although appointed as Chairman, insiders reveal Gong rarely participated in company affairs post-acquisition, effectively being sidelined. Sources indicate Gong has received offers from multiple companies but hasn't announced his next move, currently preferring to spend time with family. While presented diplomatically, this reflects the frustration many acquired company executives experience.
Post-acquisition executive departures are common in the internet industry, typically resulting from cultural clashes, strategic realignments, and power restructuring. Acquired company management often struggles to adapt to new corporate cultures and may feel marginalized. Additionally, acquirers frequently implement strategic adjustments that diminish the authority of existing leadership. For many, departure becomes a reluctant but pragmatic choice.
2. Alibaba's Acquisition of Ele.me: Final Preparations or Strategic Expansion?
On February 26, market rumors about Alibaba's impending acquisition of Ele.me sent shockwaves through the industry. Although neither party confirmed publicly, Ele.me investor Hualian Holdings disclosed that Alibaba was negotiating the acquisition. Reports indicate Baidu Takeout executives recently met with Alibaba representatives, suggesting due diligence before finalizing the deal. This confirms the acquisition has entered substantive stages, pending only timing.
Notably, Alibaba provided the funding for Ele.me's acquisition of Baidu Takeout. Consequently, industry experts consider Alibaba's acquisition of Ele.me inevitable. Although Ele.me CEO Zhang Xuhao previously denied such claims, negotiations are now an open secret. For Alibaba, acquiring Ele.me represents a crucial step in its New Retail strategy, enhancing its local services ecosystem and competitive position.
Interestingly, when announcing the Baidu Takeout acquisition, Ele.me pledged to maintain dual-brand operations. New Baidu Takeout CEO Wei Hai's primary responsibility involved implementing this strategy. However, forced integration began shortly after acquisition, merging and cutting Baidu Takeout's agent networks, channels, and merchant resources, sparking strong protests from agents. This aggressive approach damaged Baidu Takeout's brand image and eroded market share.
Meanwhile, Baidu Takeout's dedicated delivery team has nearly disappeared. Its once-proud self-operated logistics system has shifted to a crowdsourced model, with all capacity absorbed into Ele.me's delivery network. This demonstrates Ele.me's gradual erosion of Baidu Takeout's independence by integrating resources into its own system. While improving overall efficiency, this approach sacrifices Baidu Takeout's brand identity and service quality.
3. Food Delivery Competition: Far From Over, New Landscape Emerging
Baidu Takeout's decline doesn't signal the end of competition. Instead, market shares between Meituan and Ele.me have shifted significantly in recent months. Data disputes erupted immediately after Ele.me announced the Baidu Takeout acquisition, highlighting the market's competitiveness and data's strategic importance.
At the time, Meituan cited Trustdata's report showing 45.2% market share versus Ele.me's 36.4%, with Baidu Takeout at 6.3%. Ele.me referenced iMedia Research data claiming 41.7% share versus Meituan's 41%, with Baidu Takeout retaining 13.2%. Despite differing sources, both confirm Meituan and Ele.me as market leaders, with Baidu Takeout trailing.
Recent reports from China's National Information Center show industry consolidation accelerating. The Ele.me-Baidu Takeout merger essentially finalized the competitive landscape, increasing market concentration. This indicates the food delivery market has entered an oligopolistic phase, squeezing out smaller platforms.
Notably, Meituan now claims over 250 million users, 62% market share, 500,000 active delivery personnel, and coverage of 1,300 cities. Paradoxically, Ele.me's market share decreased post-acquisition, confirming Baidu Takeout's decline and Meituan's strengthened position.
However, the market continues evolving. Beyond Meituan and Ele.me, Yum China and soon-to-launch Didi Food Delivery represent new competitive forces that could disrupt the current balance. Yum China brings extensive offline resources and brand power, while Didi offers massive traffic and user bases. Their entry will intensify competition further.
4. Lessons from Baidu Takeout: Innovation and Service as Survival Essentials
Baidu Takeout's decline offers important lessons. In this competitive market, only continuous innovation and service improvements earn user trust and loyalty. Its failure resulted not just from strategic errors, but slow adaptation to market changes and insufficient innovation.
Strategically, Baidu Takeout grew overly conservative, missing key opportunities. While competitors expanded aggressively, it stagnated, falling behind. Service quality deteriorated, with mounting complaints damaging its brand—linked to weak delivery controls and merchant management. Finally, innovation lagged as rivals introduced new features and services, leaving Baidu Takeout uncompetitive.
To survive and thrive, food delivery platforms must innovate constantly and enhance services. Specific approaches include:
1. Technological innovation to improve efficiency: Leverage big data and AI to optimize delivery routes, boost efficiency, and reduce costs.
2. Service quality to build trust: Strengthen delivery controls, improve courier training, and establish robust customer service systems.
3. Service expansion to meet diverse needs: Beyond food delivery, explore grocery, supermarket, and floral delivery services.
4. Brand building to enhance influence: Through marketing and partnerships, increase awareness and reputation.
5. Future Outlook: Diversification and Refinement as Key Trends
Looking ahead, the food delivery market will trend toward diversification and refinement. As consumers demand higher-quality lifestyles, platforms must expand beyond restaurant delivery into groceries, supermarkets, and flowers. Simultaneously, platforms must emphasize service quality through refined operations that enhance user experience.
Emerging technologies will drive greater intelligence. Using big data and AI, platforms can optimize deliveries, improve efficiency, and reduce costs. Personalized recommendations based on user preferences will become increasingly important.
Ultimately, the food delivery market's future presents both opportunities and challenges. Only through constant innovation, service improvements, and market adaptation can platforms stand out and earn user trust.