Public Comment and Meituan are two big companies in the domestic O2O market. Zhang Tao, co-chairman, said that strengthening O2O, a business model that requires a lot of capital investment, requires startups to have faster business development results and faster financing speed. "In the context of the current capital winter, it is difficult for both parties to raise funds separately, whether it is the US delegation or the public comment. If you combine the two benefits, you lose. Only when the two parties merge can you reduce unnecessary subsidy costs and concentrate on facing your competitors. " Zhang Tao said.

In addition to coping with financial difficulties, Wang Xing also said that the strong complementarity between the two giants' businesses and resources is an important factor in promoting the merger. "Although they are all located in local life services, in fact, the focus is different, and the two companies are highly complementary. The logic of public comment on life service e-commerce is from content, service to transaction discount. The principle of industry expansion is to promote low-frequency beauty and weddings through high-frequency catering. Meituan focuses on trading. Meituan's' T strategy' is to cut into hotels, restaurants, movies and other fields by group buying. If the two are merged, some merchants' resources will overlap, but the high-frequency and low-frequency business cuts are different. It can really form a strong complementary effect and show its talents in local life services. " Wang Xing said.