(Yicai) July 12 -- Chinese short video platform Kuaishou Technology, which boasts 700 million users, and the country’s largest on-demand services giant Meituan, which offers services in everything from takeout meals to travel bookings, are drawing closer in a renewed strategic tie-up, media outlet 36Kr reported today, citing a Kuaishou insider.

This time, Meituan will give Beijing-based Kuaishou access to a greater range of sales mechanisms, from group buying, coupons and membership-only commodities to flash sales, the report said.

The pair, whose previous three-year partnership expired recently, will take their co-operation to “hundreds of cities and tens of thousands of stores” nationwide, it added. They will also focus on forming a more systematic underlying product structure.

Meituan boasts a huge number of merchants and commodities while Kuaishou offers a large pool of potential new clients, the person said. Kuaishou wants to leverage Beijing-based Meituan’s high-quality products to enter different market segments and expand its footprint while Meituan wants to tap into Kuaishou’s huge amount of online traffic.

Through this win-win strategy, the pair can quickly enable Meituan’s merchants to operate across multiple terminals and reduce costs while at the same time allowing Meituan’s suppliers and Kuaishou’s customers to quickly form a synergy, he said.

Meituan logged a 5 percentage point increase in the monthly conversion rate of orders on Kuaishou’s live-streaming channels each month this year. And in the second quarter, problems such as troubles placing and locating orders by Kuaishou users dropped by more than 10 percentage points year on year.

Editor: Kim Taylor