Besides Price Cutting, What Tactics Can Help Chinese Firms Expand Overseas? (AI Translation)
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文｜财新周刊 孙嫣然
By Caixin Weekly's Sun Yanran
岁末年初，沙特首都利雅得的高楼大厦间，穿着黑色和黄色骑手服的外卖小哥骑着电动车穿梭往来。这些外卖员分别为沙特两家外卖平台Hunger Station和Keeta服务——前者已被德国外卖巨头Delivery Hero收购；而后者属于中国最大的本地生活服务平台美团（03690.HK）。
At the turn of the year, in the towering skyline of Riyadh, the capital of Saudi Arabia, delivery riders dressed in black and yellow jerseys weave through the streets on electric bikes. These couriers are working for two Saudi delivery platforms, Hunger Station and Keeta. Hunger Station has been acquired by German delivery giant Delivery Hero, while Keeta is part of China's largest local service platform, Meituan (03690.HK).
Keeta在沙特不到半年就连开四城：2024年9月，先在利雅得周边小城阿尔卡吉试水，当年10月在首都利雅得铺开业务；2025年1月，在沙特第二大城市吉达、第三大城市麦加相继上线，以免费配送和大额优惠券等方式拉新；同时，还在推进沙特第四大城市达曼的落地运营。
Keeta expanded to four cities in Saudi Arabia in less than half a year. In September 2024, it first tested the waters in the small town of Al-Kharj near Riyadh. By October that year, operations had spread throughout Riyadh, the capital. In January 2025, Keeta launched in Jeddah, the second-largest city, and Mecca, the third-largest city, attracting new users through free deliveries and substantial discount vouchers. Meanwhile, plans for operations in Dammam, Saudi Arabia's fourth-largest city, are also underway.
在“出海”布局上多年谨慎犹豫的美团，正在加速抢滩出击。2024年2月，美团创始人、CEO王兴通过内部信宣布调整组织架构，其中无人机与境外业务直接向他汇报，对被视为未来增量的国际业务提升了管理优先级。整个2024年，美团外卖业务从中国香港迅速拓展到中东地区，与外卖协同的无人机、小象超市、充电宝等业务也探索国际化发展。
After years of cautious hesitation in expanding overseas, Meituan is now accelerating its plans to enter international markets. In February 2024, Meituan's founder and CEO, Wang Xing, announced through an internal memo a reorganization of its corporate structure. Under the new structure, the drone division and international business units will report directly to him, signifying the increased priority placed on international business as a source of future growth. Throughout 2024, Meituan's food delivery service rapidly expanded from Hong Kong to the Middle East, while related businesses such as drones, Xiaoxiang supermarkets, and battery rental services are also exploring international development.
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- Meituan, a Chinese local service platform, is expanding its delivery service, Keeta, in Saudi Arabia after a successful launch in Hong Kong.
- Meituan leverages subsidy strategies and technology like drones to capture market share, despite local competition.
- The company anticipates the Middle East will be a significant growth region, yet challenges like high delivery costs and competition remain.
[para. 1] In Riyadh, Saudi Arabia, delivery riders for Hunger Station and Keeta are noticeable as they navigate the city on electric bikes, representing platforms that have roots with Delivery Hero and Meituan, respectively. Meituan's platform, Keeta, expanded rapidly within Saudi Arabia, launching operations in multiple major cities by early 2025, employing tactics like free deliveries and discounts to attract users.
[para. 2] Meituan has evolved its international strategy significantly, emphasizing Middle Eastern markets. In 2024, structural reorganization underlined international expansion, involving services like drones and Xiaoxiang supermarkets. The focus on foreign markets was unmistakable as the company earmarked substantial investments for its operations in places like Hong Kong and Saudi Arabia.
[para. 3] Keeta's expansion is vital within Meituan’s broader push overseas. With significant investment planned for Saudi operations, the company is prioritizing markets like the Middle East, aligned with their long-term strategy to integrate services like drone delivery with their core food platform. The company remains proactive in evaluating entry into other global markets, although acquisitions are not emphasized due to operational inefficiencies they might introduce.
[para. 4] Meituan is accelerating its drone services globally, pushing boundaries in the Middle East where challenging climate and distance make drone use particularly promising. The company estimates that in five years, drone deliveries might constitute a substantial part of its market, particularly in territories with unique challenges that suit drone deployment better than traditional methods.
[para. 5] Expansion in the Middle East correlates with potential market saturation in domestic areas. With Meituan achieving strong financial performance post-pandemic and observing slowed growth domestically, the Middle East offers new avenues backed by favorable growth projections and a young consumer base. Strategic planning sees urbanization trends as additional confidence boosters for expansion.
[para. 6] Meituan’s push to capture the Hong Kong market began with Keeta's debut in May 2023. Aggressive strategies, including discounts and ensuring affordability, led them to eventually dominate the market by early 2024. Despite successes in market share, the Hong Kong food delivery market’s scale is small compared to mainland China, where alternatives like dining out are more prevalent.
[para. 7] By engaging drone technology overseas and addressing challenges of delivery efficiency in extreme climates, Meituan creates supportive structures favorable for expansive, efficient logistics. The Hong Kong operation showcases Meituan's adaptability and sets the foundation for tackling diverse global markets with drones, given forthcoming technological developments and regulatory accommodations.
[para. 8] Choosing Saudi Arabia was strategic, based on its growth potential, policies aiming at diversification, and the expanded demand for services. Meituan entered the local market recognizing the increasing importance of a young demographic eager for convenient service options, and leveraging relaxed policies promoting foreign investment.
[para. 9][para. 10] The move towards employing drones as a core feature, combined with a competitive strategy of low fees and punctuality in delivery, underpins Meituan's efforts to capture and expand its market share. Understanding consumer behaviors, such as higher order values in some regions, helps tailor their offerings according to local preferences. Meanwhile, local competition and regulatory landscapes provide both opportunities and challenges.
[para. 11] Unique aspects like a young population, shifting societal norms, and cultural factors in the Middle East contribute to Meituan’s strategic decision-making. The nascent but promising potential of drone deliveries and regional adaptations showcase how Meituan keeps evolving amid international ventures, paving the way for potentially revolutionary service models in logistics.
- Meituan
美团 - Meituan is accelerating its international expansion, focusing on the Middle East and Hong Kong. In Saudi Arabia, Meituan’s delivery platform, Keeta, aims to invest significantly and expand rapidly. They've also integrated drone delivery and plan further international moves. While facing initial losses abroad, Meituan is leveraging competitive pricing and advanced logistics to capture market share amidst slowing growth in China's domestic market.
- Delivery Hero
德国外卖巨头Delivery Hero - Delivery Hero, a German food delivery giant, has acquired Hunger Station, a major food delivery platform in Saudi Arabia. Hunger Station is a key competitor in the Middle Eastern food delivery market, and alongside platforms like Jahez, holds a significant market share in Saudi Arabia.
- Hunger Station
Hunger Station - Hunger Station is a food delivery platform based in Saudi Arabia, which has been acquired by the German food delivery giant Delivery Hero. It is one of the leading local players in the Saudi food delivery market, and, as of 2023, along with Jahez, it held a significant portion, specifically 70%, of the market share in Saudi Arabia.
- Keeta
Keeta - Keeta is Meituan's food delivery platform in Saudi Arabia, rapidly expanding since its launch in 2024. It operates in cities like Riyadh and Jeddah, offering free delivery and large discounts to attract users. Keeta plans to invest 10 billion Saudi Riyals in Saudi Arabia and has achieved a significant market share in Hong Kong, becoming the leading food delivery service within a year of operation. They are exploring further Middle Eastern, Asian, and Latin American markets.
- Deliveroo
户户送 - Deliveroo, headquartered in London, entered the Hong Kong market in 2015. It faced competition from other food delivery platforms, including Foodpanda, which had been in Hong Kong since 2014, and Uber Eats, which left the market in 2021. Deliveroo was one of the established competitors when Meituan's Keeta expanded its presence in Hong Kong, where Keeta quickly gained a leading market share.
- Uber
优步 - The article mentions that Uber's food delivery platform, Uber Eats, entered the Hong Kong market in 2016 but struggled to gain a significant market share, which remained around 5%. Ultimately, Uber Eats exited the Hong Kong market by the end of 2021.
- DiDi
滴滴 - The article mentions that Guo Guangyu, who led Meituan's overseas food delivery business department, previously worked at DiDi and Kuaishou. DiDi is not a focus of the article, serving only as part of Guo's career background before joining Meituan's efforts in expanding its food delivery services internationally.
- Kuaishou
快手 - The article briefly mentions Kuaishou in the context of Meituan's expansion strategy. It notes that Guo Guangyu, who played a key role in Meituan's overseas delivery operations, has a background at Kuaishou and Didi, suggesting the transfer of industry expertise to support Meituan's international growth efforts.
- Foodpanda
Foodpanda - Foodpanda, a German-owned food delivery platform, has been active in the Hong Kong market since 2014. Despite competition from Meituan's aggressive entry with Keeta, Foodpanda has maintained a significant market presence, focusing on sustainable long-term growth rather than short-term discounts. It has expanded beyond food delivery into retail, similar to Meituan's "flash sale" model, with about 10% of its GMV coming from non-food items.
- Jahez
Jahez - Jahez is mentioned as one of the main local food delivery platforms in Saudi Arabia, along with Hunger Station. As of 2023, these two platforms collectively held 70% of the food delivery market share in Saudi Arabia.
- Talabat
Talabat - Talabat is one of the main local food delivery platforms in the Middle East, alongside Jahez and Hunger Station. It is noted as a competitor in the expanding food delivery market within the region.
- Pizza Hut
必胜客 - In Dubai, Meituan drones have partnered with Americana, the local operator of Pizza Hut and KFC, to facilitate delivery services.
- KFC
肯德基 - In the article, it is mentioned that Meituan's drones are being used in Dubai for delivery services in collaboration with KFC and Pizza Hut's local operator, Americana.
- Americana
Americana - Americana, the local operator for KFC and Pizza Hut in Dubai, is collaborating with Meituan's drone delivery service for distribution. This partnership allows for the delivery of meals using drones within the designated delivery areas.
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