SZ takes 3rd place in new business format development

Writer: Zhang Yu  |  Editor: Stephanie Yang  |  From: Shenzhen Daily  |  Updated: 2020-10-15

Shenzhen ranked third among Chinese cities in terms of development of new business formats within the daily life services industry, according to a report released by the food delivery giant Meituan on Monday.

According to the report, the top 10 new business formats on Meituan in 2019 include food delivery, group buying, flash sales, online car hailing, bed and breakfast (B&B), themed restaurants, shared travel, nonsurgical cosmetic treatments, room escape games and fresh food retail.

The on-demand delivery platform reported a transaction volume of 483.74 billion yuan (US$71.64 billion) in new business formats in the daily life services industry last year.

From 2016 to 2019, the transaction volume of new business formats in daily life services on Meituan increased by 2.7 times, with an average annual growth rate of 55.1 percent.

New formats and occupations in the daily life services industry are becoming one of the key factors to enhance a city’s attractiveness, creativity and competitiveness.

Beijing, Shanghai, Shenzhen, Guangzhou, Chengdu and Chongqing are leading the country in terms of the development of new business formats.

The report disclosed five promising new business formats in the daily life services industry for 2021. Based on big data, Meituan predicted that community group buying, flash sales, shared e-bikes, nonsurgical cosmetic treatments and paid study rooms would show the greatest potential next year.

More than 70 new occupations have emerged on Meituan due to the new business formats, including on-demand deliverymen, room escape game designers and digital operators.

The report also pointed out that practitioners of these new occupations not only face the uncertainty relative to the development of the emerging industry, but also problems such as an imperfect vocational training system and limited promotion opportunities.