Meituan

Meituan
Company type	Public
Industry	E-commerce, Food delivery, Online services
Founded	2010; 16 years ago
Founder	Wang Xing
Headquarters	Beijing, China
Area served	China, Hong Kong, Middle East (Saudi Arabia)
Key people	Wang Xing (Founder and CEO)
Products	Food delivery, On-demand retail, Hotel and travel services, Bike sharing, E-bike sharing, Autonomous delivery vehicles, UAV delivery
Number of employees	5000 (2014)
Website	meituan.com

Meituan (, meaning "beautiful group"; previously known as Meituan–Dianping) is a Chinese-based platform providing a range of local consumer goods and services, including dining, entertainment, delivery, and travel solutions. Founded in 2010 by Wang Xing, the company is headquartered in Beijing.

The company manages various applications and websites designed for different service categories. Its platform offers daily deals through vouchers redeemable for local entertainment and services. By May 2014, Meituan had grown to employ around 5,000 individuals. In 2015, it merged with Dazhong Dianping and rebranded as "Meituan-Dianping." The site dianping.com features user-generated restaurant reviews, comparable to Yelp and TripAdvisor, and provides group-buying options similar to Groupon. Meituan-Dianping ranks among the largest global platforms for online and on-demand delivery.

By April 2018, the platform reported more than 290 million active users monthly and a total of 600 million registered accounts. In the second quarter of 2021, Meituan's gross transaction value for food delivery grew by 59.5% year-over-year, with daily food delivery orders increasing by 58.9% to reach 38.9 million.

Company

Meituan.com operates as a group-discount marketplace offering merchant vouchers, earning commissions once minimum purchase quantities are met. Its main income is derived from services accessed via mobile applications. The company collaborates with upwards of 400,000 local businesses throughout China and holds the leading market share in revenue, outperforming rivals such as LaShou and 55tuan.

History

Starting its operations with pilot projects in Shanghai and Beijing, Meituan quickly expanded into smaller second- and third-tier cities, achieving a user base of 200 million by 2015. It became a leading force after consolidating numerous daily deal providers, capturing approximately 60% of China's group-buying market by 2014. Early investments included $12 million from Sequoia Capital, followed by a $300 million Series C funding round led by General Atlantic in May 2014.

On October 8, 2015, Meituan joined forces with Dianping, another major Chinese group-buying platform. By January 2016, the combined entity had raised over $3.3 billion in capital. The company went public on the Hong Kong Stock Exchange on September 20, 2018, with an initial share price of HK$69. The name changed from "Meituan Dianping" to simply Meituan on September 30, 2020.

In April 2021, Meituan raised close to $10 billion through convertible bonds and equity offerings to support its ventures into grocery retail and autonomous delivery technology. That same month, regulatory pressure increased as China’s State Administration for Market Regulation initiated an antitrust investigation targeting the company. By May 2021, this scrutiny contributed to a nearly $40 billion decline in market capitalization. Meituan accepted the imposed fine without contesting it and pledged adherence to regulatory requirements going forward.

In May 2023, Meituan introduced its Hong Kong food delivery service "Keeta," marking its initial expansion beyond mainland China with pilot operations launched in Mongkok and Tai Kok Tsui.

Food Delivery

Launched in 2013, Meituan’s food delivery service represents a key revenue pillar that saw accelerated growth during the pandemic period. It dominates the Chinese market with over a 65% share, significantly ahead of its closest competitor Ele.me, which holds less than 30%. This business segment also enhances user engagement and drives cross-platform traffic toward hotel reservations and travel bookings.

On Demand Services

Meituan maintains an extensive on-demand retail network spanning 2,800 counties and cities throughout China, supported by more than 1 million active delivery personnel daily and a total driver pool of 5.27 million in 2021. The delivery timeframe varies by city classification, ranging from immediate to next-day fulfillment.

The Meituan Instashopping platform assists small and medium-sized enterprises in digitalizing their sales channels, offering either instant or next-day delivery options. It collaborates with over 400 brands across more than 200 urban areas. Annual order volume has increased by 40%, while the number of active merchants has risen by 30%, providing items such as flowers, pharmaceuticals, and everyday essentials to cities up to the third tier.

Rebranded as Xiaoxiang Supermarket in 2023, Meituan Grocery shifted its focus from traditional grocery services to an online supermarket approach concentrating on fresh produce and medicines, delivering instantly within Tier 1 cities.

Meituan Select caters to lower-tier markets by offering next-day delivery for non-urgent products including appliances and clothing. Initiated in 2020 amid the COVID-19 pandemic, this service leverages bulk purchasing to minimize expenses and operates across more than 20 provinces through Meituan’s logistics infrastructure. Customers retrieve their orders at designated local collection points.

This business strategy has significantly boosted gross merchandise volume (GMV), positioning Meituan ahead of competitors such as Duo Duo Grocery (Pinduoduo) and Taocaicai (Alibaba). Nevertheless, the company faced regulatory penalties in 2021 due to practices involving predatory pricing and misleading advertising, which impacted profitability.

In response to these challenges, Meituan reorganized its operations and introduced cost-reduction initiatives, redirecting focus toward supply chain optimization and achieving profitability by 2023.

Hotel and Travel Services

Since entering the hotel and travel market in 2015, Meituan has expanded its collaborations to include over 900 hotel chains featured in their “Must-Stay List for 2023.” The sector has experienced a surge in tourism, resulting in a 120% increase in bookings year-over-year. Utilizing its broad network and data analytics capabilities, Meituan offers discount coupons and package deals that assist small and medium hotels in attracting guests, improving room renovations, and refining marketing efforts. A key partnership with Agoda enhances service offerings for Chinese travelers abroad. Following a trend similar to Pinduoduo, Meituan has incorporated livestreaming features to engage users through virtual tours—a strategy that gained popularity after COVID-19 by promoting domestic tourism.

Bike Sharing and E-Bike Sharing

In April 2017, Meituan acquired Mobike for US$2.7 billion, taking charge of the manufacturing, operation, and disposal processes for bicycles and electric mopeds. Their research and development as well as production comply with environmental regulations and national safety standards.

Other Services

Additional offerings from Meituan include a business-to-business food distribution platform (快驴), power bank sharing services, micro-lending solutions, and a restaurant management system (RMS).

Unmanned Aerial Vehicles

In 2023, Meituan introduced unmanned aerial vehicles (UAVs) designed to improve urban logistics delivery within a five-kilometer radius under diverse weather conditions. By the end of that year, nearly 300,000 deliveries had been completed across various cities. Collaborating with Toyota-backed unicorn Pony.ai, Meituan licensed autonomous technology to broaden UAV delivery operations within China’s first-tier urban areas.

Autonomous Delivery Vehicles

Expanding its service portfolio, Meituan rolled out autonomous delivery vehicles in 2021, focusing on high-density urban centers such as Shanghai, Beijing, and Shenzhen. This advancement reflects China's increasing integration of self-driving technologies across various transport modes, including urban buses and taxis. Collaborating with Li Auto Inc., Meituan utilizes Li Auto's proprietary assets—comprising the SEV model's full vehicle design, molds, and manufacturing tools—to propel its autonomous vehicle initiatives forward.

International Growth

Meituan is actively pursuing global expansion beyond mainland China, commencing with the introduction of the Keeta delivery app in Hong Kong and extending its footprint into the Middle East region.

Hong Kong

In May 2023, Meituan debuted its inaugural food delivery service outside mainland China through Keeta. The initial rollout targeted the Mong Kok and Tai Kok Tsui neighborhoods, with plans to broaden coverage throughout Hong Kong by year-end 2023. To attract users, Keeta offered new customers HK$300 worth of vouchers applicable at partner outlets such as McDonald's, KFC, and Yoshinoya. Additionally, the platform implemented an “On-time Promise” policy that compensates customers for delayed deliveries to build consumer confidence.

Saudi Arabia

Meituan launched Keeta in Riyadh, Saudi Arabia, in September 2024, introducing free delivery and promotional discounts during the launch period. The company aims to secure as much as 80% of Saudi Arabia’s food delivery market by 2025. This expansion aligns with Saudi Vision 2030 and is supported by an investment of SR1 billion ($266.6 million) to enhance operational capacity, generate employment opportunities, and improve service quality. Keeta prioritizes affordability, a broad restaurant selection, expedited deliveries, and customized user experiences. CEO Wang Xing has emphasized international growth as a core long-term objective.

Meituan's Network Marketing

As a premier Chinese O2O (online-to-offline) local services platform, Meituan boasts 600 million users and nearly 4.5 million business partners nationwide. Daily active users number around 35 million. The platform delivers extensive "travel life" services with 70 million active users in hotel and travel categories.

In 2020, Meituan generated RMB 114.8 billion in revenue while serving 511 million annual users predominantly through its food delivery segment. It supported 6.8 million active merchants and facilitated 355 million domestic hotel room nights, maintaining industry leadership. Meituan holds a commanding share of the food delivery market, reinforcing its status as the foremost local lifestyle services provider.

Leadership and Governance

Based in Beijing, Meituan was established in 2010 by Wang Xing, who previously founded social networking platforms Xiaonei and Fanfou.

Executive Directors:

Wang Xing (王興): Co-founder, CEO, and chairman responsible for strategic direction and overall management; also serves on boards of various subsidiaries.

Mu Rongjun (穆榮均): Co-founder and senior vice president overseeing financial services and corporate affairs.

Non-Executive Director:

Neil Nanpeng Shen (沈南鵬): Serving since October 2015; provides expertise on investment strategies, business development, and financial oversight.

Independent Non-Executive Directors:

Orr Gordon Robert Halyburton: Board member since September 2018; advises on finance, accounting standards, and corporate governance practices.

Leng Xuesong (冷雪松): Appointed September 2018; offers counsel on financial matters, executive remuneration, and governance frameworks.

Shum Heung Yeung Harry (沈向洋): Since September 2018; specializes in technology innovation and global internet trends.

Yang Marjorie Mun Tak (楊敏德): Joined June 2023; focuses on business growth strategies and governance oversight.

Senior Management:

Wang Xing (王興): Chief Executive Officer.

Mu Rongjun (穆榮均): Senior Vice President.

Chen Shaohui (陳少暉): Senior Vice President since November 2014; responsible for finance, strategic planning, investments, and capital markets activities.

Wang Puzhong (王莆中): CEO of Core Local Commerce since 2015; manages nine divisions including platform infrastructure, dining services, hotel & travel sectors, food delivery operations, Instashopping, and pharmaceutical services.

Zhang Chuan (張川): Senior Vice President since January 2017; oversees Dianping operations, RMS systems, bike & e-moped sharing services, along with power bank businesses.

Awards and recognition

In 2019, Meituan was honored with the IDG International Innovation Enterprise Brand Award for its advancements in unmanned delivery robot technology. That same year, Treasury Today Group and JP Morgan Asset Management recognized Meituan with the Best Short-Term Investing Solution award, highlighting the company's effective approach to managing investment and liquidity issues. Furthermore, Meituan's Keeta application received the Best Everyday Essential accolade at Google Play Hong Kong's Best of 2024 Awards, praised for its smooth incorporation into users' daily routines.

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