Youdao, a sub-brand under Netease, announced today that it has outsourced its search service to Qihoo 360. Then it will focus on its mobile services, Youdao Note (a cloud-based note taking app), Youdao Dictionary (online dictionary) and Huihui (a shopping search and price comparison service).

Youdao started out as a search business several years ago. Its peers back then included Sohuโ€™s Sogou and Tencentโ€™s Soso. As Baidu has dominated search market in China, all the smaller playersโ€™ combined market share has been minor. Youdao searchโ€™s share was 0.25% as of June 2013, according to CNZZ. Sogou was the only one that gradually grew bigger, having taken 9% of search market share.

The market was suddenly disrupted by Qihoo who launched its own search service So.cn in last August and has gained a 16% market share.  The company made it clear that their target was Baidu. Qihoo confirmed earlier that it was in talks with Sogou on acquisition for an estimated $1.2 billion to $1.4 billion. The combination of the two will represent about a quarter of the search market in China.

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com

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