I live in China, and I am a user of ele.me - the food delivery service, and have worked with 17zuoye. 17zuoye is a solid business. They have worked for years to

I live in China, and I am a user of ele.me - the food delivery service, and have worked with 17zuoye. 17zuoye is a solid business. They have worked for years to penetrate the K-12 education market, which, being public funded move at a rather slow pace, but once you get your foot in the door, you have a natural barrier to fend off new entrants. Ele.me is a rather curious story. They get to where they are by heavily subsidizing restaurants and customers. For all I can tell, they lose money on every delivery they make. and the moment they cut back on subsidies, people stop using their service. As a customer I welcome the subsidies (it works like a wealth transfer program, where the VC's are footing lunch bills), but as a sustainable business I am not sure where it could be headed...