Previously, as China's economic center, Shanghai was frequently criticized for lacking Internet genes because it did not have giants such as "BAT" and some well-known Internet companies.

Recently, Shanghai has a sense of pride. In the list of China's top 100 Internet companies in 2019, 19 Internet companies in Shanghai were on the list. As a result, it was widely circulated on the Internet that "it is time to change the impression of Shanghai, and Shanghai has gradually become an important city of the Internet."

But in fact, in the list of China's top 100 Internet companies in 2018, 21 companies in Shanghai were on the list, two more than this year, so why did the world's impression of Shanghai change?

The main reason is that Pinduoduo has surpassed Baidu. Pinduoduo's current market value is 40.3 billion US dollars, while Baidu's is only 35.7 billion US dollars.

In the market value list of listed Internet companies, Pinduoduo's market value is second only to Alibaba, Tencent, Meituan and JD.com, ranking fifth in the country. More importantly, Pinduoduo was founded only four years ago, and there is still a great opportunity to continue to improve its ranking in the future.

Before Pinduoduo, the highest-ranked Internet company in Shanghai was Ctrip, with a market value of less than 20 billion US dollars. In terms of market value, it was not among the top ten, and it was only ranked 16th in the list of China's top 100 Internet companies.

In the eyes of the majority of netizens, quality is more memorable than quantity. Therefore, the number of industry champions and leading companies can better represent the Internet strength of a city.

In Shenzhen, there is almost only one Internet company, Tencent, and the second one is Xunlei, with a market value of only about 180 million US dollars. However, due to the existence of Tencent, we often think that Shenzhen's Internet genes and strength are stronger than Shanghai.

But in fact, Shanghai has always been a major city for Internet companies to start businesses, but due to various reasons, it has not been able to cultivate giants.

1. List of listed companies (13 companies)

In addition to Pinduoduo and Ctrip, other well-known Internet companies in Shanghai include Eastmoney (market value of RMB 109.4 billion), Ping An Good Doctor (HKD 51.8 billion), 37 Interactive Entertainment (RMB 38.6 billion), Giant Interactive (RMB 36.8 billion), Oriental Pearl (RMB 33.8 billion), Bilibili (USD 4.7 billion), 51job (USD 4.7 billion), Wangsu Technology (RMB 27.3 billion), 2345 (market value of RMB 20.3 billion), China Literature (HKD 25.8 billion), Youzu Interactive (RMB 14.1 billion), Qutoutiao (USD 1.1 billion), Paipaidai (USD 1.1 billion), and Gangyin E-Commerce (USD 5.6 billion).

2. Unlisted or delisted, China's top 100 Internet companies (12 companies)

There are also unlisted top 100 Internet companies, including Lufax (valued at US$40 billion), Himalaya (valued at US$24 billion), Xiaohongshu, Shanghai Poker City Network Technology (Fishing Master, etc.), Shanghai Mihayou Network Technology (Hengkai Games), Shanghai Lianshang (Wifi Universal), Zhaogang.com (valued at US$17 billion), Eastday.com (valued at US$15 billion), Lvmama, Jiayuan.com, Hujiang Education, and UCloud (cloud computing).

3. Acquired Internet companies

Ele.me (wholly acquired by Alibaba for US$9.5 billion), Dianping (merged with Meituan), No.1 Store, Anjuke, Tudou, Shanda, Yixun.com, Tiantian Dongting, etc. This is also the reason why Shanghai was previously complained about. Many Internet companies do not have tenacity, and most of them choose to realize their assets and be acquired.

Fourth, the core business of well-known Internet companies

Shanghai has many universities and is also a gathering place for Internet talents. Most Internet companies will place R&D, entertainment, games and other businesses in Shanghai.

Such as Ant Financial (Shanghai Tower), some short video and advertising businesses of ByteDance (Caohejing and No. 8 Bridge), Alibaba Youku Ali Pictures and other businesses, some R&D of Baidu (Zhangjiang Hi-Tech Park), Tencent Shanghai Building (Caohejing), JD Shanghai (Songhong Road BenQ Building), Vipshop (Dahongqiao Zhongjun Plaza), iQiyi (Caohejing), and NetEase all have businesses in Shanghai.

Therefore, although there are not many Internet giants in Shanghai, there are enough unicorns and Internet companies, especially in the future artificial intelligence industry. Shanghai has more than 1,000 core enterprises, more than 3,000 pan-artificial intelligence enterprises, and an industry scale of more than 70 billion yuan.

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