Oh wow, what a surprise this is.
Today, Axios has reported that TikTok is “eyeing an expansion of its local services business to the U.S.”, according to new job postings listed in some regions.
As per Axios:
“TikTok is currently hiring for people based in Seattle, Los Angeles and New York to evaluate opportunities to connect local merchants and vendors with TikTok creators and users, according to nearly two dozen jobs posted online. [Some] listings note TikTok is looking to onboard lifestyle creators across topics like food and travel, to help drive local services adoption and monetization opportunities.”
As it continues to grow its in-app shopping push, TikTok is now looking to expanded opportunities to get money moving in the app, with local services now in its sights, according to these listings.
Which is no surprise at all, because that’s exactly what the Chinese version of TikTok (Douyin) already offers, with streamlined connection to a broad range of services direct within the app.
On Douyin, third-party developers are able to integrate “Mini Programs”, which are essentially smaller, more lightweight versions of their own apps within the broader Douyin ecosystem.
That’s expanded the in-app marketplace, with Mini Programs available for ordering food, ride-hailing, buying tickets, etc., all within the Douyin app. That enables users conduct a lot more of their daily transactions in a single platform, which seems to be a major drawcard for Chinese users, and could also open up more opportunity for TikTok as well.
Indeed, it makes logical sense for TikTok, as a means to expand its in-stream shopping push.
The platform is seeing steady growth in in-app spending, but thus far, it hasn’t come close to the adoption rates for such that it’s seen in its homeland.
But more people are looking to shop in the app, and if TikTok can capitalize on that behavior, that could present major opportunities.
For comparison, Douyin’s gross merchandise volume (GMV) for 2024 reached 3.5 trillion yuan, or around $US490 billion. By comparison, TikTok’s GMV in 2024 was around $30 billion.
Which, as noted, is growing, and $30 billion is an impressive amount of sales generated in-app, but the expanded opportunity, if it can replicate its Chinese success, is way, way bigger.
Which is why TikTok is so keen to get you buying stuff in-stream, while the U.S. is also TikTok’s biggest spending market. As such, its efforts to avoid a ban in the region also play an important role in this expanded push, while it’s also working to grow its eCommerce elements in other regions as well.
A side-step into services is another factor in the broader picture, and again, given its success with such in China, it’s a logical step for TikTok to make.
So expect to see links to Uber, DoorDash, and others start popping up in your TikTok stream, prompting you to order now for delivery.
