Gaode Maps: Struggling with Three Major Challenges – A Survival Crisis Involving AI, Traffic, and Internal Competitions within Alibaba
Hello everyone, I'm your financial analyst. Today, we're not talking about a map app, but rather about a survival battle taking place within Alibaba, involving Meituan and ByteDance.
The article uses a very interesting metaphor: the "Three Arrows of King Jin." Back then, Li Cunxu took three arrows left by his father, each representing an enemy that needed to be defeated: his long-standing rival Zhu Wen, the powerful Khitan, and the traitor Liu Rengong.
Today, Gaode Maps also holds three "arrows," each targeting a troublesome opponent:
1. Meituan (long-standing rival): Meituan has been dominating the local services market (eating, entertainment, etc.) over Gaode.
2. DouBao/ByteDance (powerful rival): These companies are using AI to directly compete for users' initial choices before they even set out, even taking over services like car-hailing and navigation.
3. Alibaba's own internal competitors (FeiZhu, QianWen): Although they all belong to Alibaba, their overlapping businesses are competing for traffic, making Gaode seem redundant.
Let me break down these challenges in simpler terms to help you understand the predicament Gaode Maps is in.
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The First Arrow: Gaode Maps' "Street Scanning Ranking" – Winning Face, Losing Substance
Core Issue: Gaode wanted to use "real data" to beat Meituan's fake ratings, but users didn't buy into it, and Meituan wasn't affected.
1. Accurate Pain Point, but Ineffective Product
People used to complain about Dianping: "All the high-rated restaurants are faked; the really good ones have low ratings."
Last year, Gaode launched the "Street Scanning Ranking," emphasizing "authenticity." It didn't matter how many positive reviews you left; it focused on whether you actually visited the place. For example, if you navigated to a restaurant and stayed there for enough time, that counted as a real visit.
- Good Intent: To eliminate fake ratings.
- Reality: The top-ranked restaurants were often already extremely popular, with no need for Gaode to verify their quality.
- Embarrassing Outcome: These restaurants were already famous and didn't need Gaode's validation. Gaode's effort ended up just giving these well-known places an "award," without helping users discover hidden gems.
2. Meituan Unharmed, Gaode No Gain
Gaode CEO Guo Ning promised the ranking would never be commercialized, aiming to attract users for other Alibaba services like Ele.me and FeiZhu. However, the data showed:
- Meituan: Despite losses in the food delivery battle, its core local services were still profitable. Morgan Stanley predicts Meituan holds a 60% share in the food industry, stable as ever.
- Gaode: After a year, there was no convincing data on new users or transactions from the ranking.
- Conclusion: Gaode's strategy to encircle Meituan's territory failed because users continued to use Meituan for finding and paying for services.
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The Second Arrow: Gaode Maps' "Trip Safety Guide" – Losing the Entrance to Users to AI
Core Issue: Gaode wanted to help users avoid pitfalls, but ByteDance's AI assistant, DouBao, not only provided safety advice but also took over car-hailing and hotel booking services.
1. DouBao Becomes the Dominant Assistant
Previously, users would ask: "What's good to eat nearby?" or "How to get to the airport?"
- Before: They used Gaode Maps for searches and navigation.
- Now: They ask DouBao: "I need to go to the airport and eat within 200 yuan, arrange it for me."
DouBao can not only answer questions but also use TikTok's service data to book rides and hotels directly.
- Fatal Blow: DouBao introduced "Light Navigation" and "One-Click Car Hailing":
- Light Navigation: Shows walking and cycling routes directly (using Baidu Maps data, not Gaode's).
- One-Click Car Hailing: Users can book rides right within the DouBao app.
- Consequence: Gaode's core function, map navigation, became a secondary feature, with users often using DouBao without even opening the Gaode app.
2. DouBao Takes Over the Entrance
Gaode's "Trip Safety Guide" claimed to use AI to prevent unnecessary trips, but DouBao excels at this. With over 380 million monthly active users, it outperforms Alibaba's AI assistant QianWen. In the battle for user interactions, Gaode lost the opportunity to influence users before they even left home.
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The Third Arrow: Internal Competition within Alibaba
Core Issue: Gaode wanted to be a comprehensive lifestyle platform, but FeiZhu, QianWen, and Ele.me were competing for the same market, making it hard for Gaode to establish a clear role.
1. Gaode vs FeiZhu: Who's the Travel Expert?
Gaode demonstrated a scenario where it planned a 5-day road trip with children in Guiyang, showing potential issues with attractions and traffic.
- Perfect Sound: But after planning, users had to book hotels, tickets, and flights separately.
- FeiZhu Steps In: FeiZhu's AI assistant could also plan the trip and handle bookings directly.
- Fragmented Experience: Users had to switch between apps for different tasks.
- Consequence: Gaode's role became blurred within Alibaba, with internal resources being wasted.
2. Gaode vs QianWen: Who's the AI Leader?
Alibaba now has a unified AI assistant, QianWen, integrated with Taobao, Alipay, FeiZhu, and Gaode. Alibaba aims for users to use QianWen for everything.
- Gaode's Position: If users use QianWen, Gaode becomes just a map tool; if they use Gaode, Gaode has to build its own AI system.
- Organizational Decline: FeiZhu and Ele.me are part of the e-commerce group, boosting their status, while Gaode is marginalized.
- Impact: Projects like the Street Scanning Ranking received less support, indicating reduced resource allocation.
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Conclusion: Why Are Gaode Maps' Attempts Failing?
1. Meituan: Real data didn't change user behavior, and Meituan remained unscathed.
2. DouBao: As a versatile AI assistant, DouBao provided a more seamless experience, taking over navigation.
3. Alibaba Internal Competition: Internal rivals divided resources, making it hard for Gaode to establish a clear position.
Implications for Consumers: If you're still deciding between Gaode and Meituan, there's no need to worry; they complement each other. However, if you start using AI assistants, traditional map and review apps may become secondary tools.
Implications for Investors: Gaode's strategic value within Alibaba is being re-evaluated. It may no longer be a standalone growth driver but rather a component of Alibaba's AI ecosystem. Its valuation and growth prospects may need to be adjusted downward.