Caixin Weekly | Meituan Ventures Overseas with Subsidized Price Wars, Rapid City Launches in the Middle East (AI Translation)
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文｜财新周刊 孙嫣然
By Sun Yanran, Caixin Weekly
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）。
As the year wrapped up and the new one began, delivery workers clad in black and yellow uniforms rode electric bikes through the skyscrapers of Riyadh, the capital of Saudi Arabia. These couriers work for two Saudi delivery platforms: Hunger Station and Keeta—the former acquired by German delivery giant Delivery Hero, and the latter owned by China's largest local life services 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。
In less than half a year, Keeta has expanded into four cities in Saudi Arabia: In September 2024, it first tested the waters in the small town of Al Kharj near Riyadh, and by October of that year, it had expanded its operations to the capital, Riyadh. By January 2025, it had launched successively in Jeddah, the second-largest city in Saudi Arabia, and Mecca, the third-largest, attracting new customers through free delivery and substantial discount coupons. Simultaneously, the company is also advancing its operations in Dammam, the fourth largest city in Saudi Arabia.
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- Meituan, a Chinese life services platform, is expanding its food delivery services into Saudi Arabia via its Keeta brand, aiming to reach all major cities by 2025 and planning to invest 1 billion Saudi riyals.
- Keeta has rapidly gained a significant market share in Hong Kong, surpassing competitors with aggressive pricing strategies and reaching 44% market share by March 2024.
- Meituan is exploring drone delivery technology in the Middle East, leveraging the unique market conditions and regulatory environments, with plans for further expansion and collaboration with local businesses.
As of early 2025, Meituan, a leading Chinese local life services platform, has significantly expanded its international presence, particularly through its food delivery services under the Keeta brand in the Middle East and Hong Kong. [para. 1] Meituan's efforts are spearheaded by its founder and CEO Wang Xing, who announced in 2024 a strategic focus on drone and international operations. This drive has seen Meituan establish a foothold in four Saudi Arabian cities: Al Kharj, Riyadh, Jeddah, and Mecca, with immediate plans to grow into Dammam. [para. 2] Keeta's rapid expansion in Saudi Arabia is highlighted by promotional strategies like free delivery and substantial discounts, aiming to entice a new customer base. [para. 2][para. 3]
Meituan's strategy in the Middle East includes an investment of 1 billion Saudi riyals (approximately 1.9 to 2 billion RMB) and plans for its Xiaoxiang supermarket and drone services to be introduced later. [para. 3][para. 4] The company also eyes the convergence of food delivery and drone operations in the region. Currently, Keeta is exploring potential markets in the UAE, Japan, and South Korea, in addition to scouting opportunities in North Africa and South America. [para. 5] Zhu Xiujie, president of Dhow Holding, notes that Meituan is evaluating acquisition possibilities, although challenges exist due to the heterogeneous nature of back-end systems in these markets. [para. 5]
Meituan is leveraging synergy between drones and food delivery, particularly focusing on markets like Saudi Arabia and the UAE, where drones offer a solution to delivery issues posed by hot climates and long distances. By 2030, drones are expected to account for a substantial 10-20% of their delivery services in the Middle East. [para. 6][para. 7]
Wang Xing's hands-on approach and entrepreneurial mindset emphasize adaptation and experimentation, as reported by sources close to him. Meituan's shift to international markets partly stems from the saturation of China's food delivery sector, where despite recent profitability, the growth potential has dimmed, pressing Meituan to seek new horizons. [para. 8][para. 9]
The Middle East appears promising due to projected GDP growth and urbanization rates. A dynamic young population adds to the appeal, with Meituan aiming to capture this demographic by expanding its digital service offerings. Presently, Keeta faces initial losses but holds potential to boost growth rates due to its low base. [para. 10][para. 11]
Keeta was introduced to the Hong Kong market in May 2023 as Meituan's first attempt at going overseas after overcoming initial stumbling blocks like regulatory limitations on e-vehicles. Despite entering a fiercely competitive market with established players like Foodpanda and Deliveroo, Keeta rapidly captured market share, achieving a leading position within a year through aggressive pricing strategies. [para. 12][para. 13] However, the market size remains limited compared to mainland China, and turning a profit proves challenging given the lower order values.
Meituan transferred personnel from Hong Kong to focus on the burgeoning Saudi market, leveraging favorable market and policy conditions. The Saudi government’s Vision 2030 initiative has catalyzed opportunities for digital service expansion. Keeta's reliance on waiving delivery fees and emphasizing timely service as marketing tools in Saudi Arabia has positioned it favorably against local incumbents. [para. 14][para. 15]
Drones play a crucial role in Meituan's overseas plans, overcoming geographical and climatic challenges unique to the Middle East. Though economic viability in China is unresolved, the region’s openness to drone use presents growth opportunities. [para. 16][para. 17] Meituan has made strides in Dubai, with regulatory support and advanced technology aiding the acceptance and integration of drone delivery services, positioning it as a forerunner in this logistical innovation. [para. 18][para. 19] Despite current financial challenges, Mao Yinian, Meituan’s VP leading the drone business, expresses optimism about future profitability and scaling potential in the coming years. [para. 20]
- Meituan
- Meituan is expanding its international presence, particularly in the Middle East, through its food delivery service Keeta. In less than a year, Keeta launched in four Saudi Arabian cities and plans broader expansion. Meituan also explores collaborative opportunities with drones for deliveries. The company aims to leverage experiences from its operations in Hong Kong and invest heavily in growing these new markets, targeting both urbanization and a young consumer base in the region.
- Delivery Hero
- Delivery Hero is a German food delivery giant that has acquired the Saudi Arabian platform Hunger Station. It was an early entrant into the Hong Kong market through its brand Foodpanda, established in 2014. Despite strong competition, Foodpanda maintained a significant presence in Hong Kong until Meituan's Keeta surpassed its market share by 2024.
- Deliveroo
- Deliveroo, headquartered in London, entered the Hong Kong market in 2015. It initially joined a competitive environment with players like Delivery Hero's Foodpanda and Uber Eats. In the article, Deliveroo is noted as one of the competitors faced by Meituan's Keeta in Hong Kong's delivery market. Despite the competition, Keeta managed to surpass Foodpanda to become the market leader by March 2024.
- Uber
- The article mentions that Uber's food delivery platform, Uber Eats, entered the Hong Kong market in 2016 but had a market share of about 5% before ultimately exiting the market at the end of 2021.
- DiDi
- The article mentions that in September 2022, Meituan established an overseas food delivery business department led by Qiu Guangyu, who has experience from DiDi and Kuaishou.
- Kuaishou
- The article mentions that Qiu Guangyu, who led Meituan's overseas food delivery division, has a background with Kuaishou and Didi. However, no further details about Kuaishou's involvement or actions are discussed in the article.
- Hunger Station
- Hunger Station is an external food delivery platform in Saudi Arabia that has been acquired by the German delivery giant Delivery Hero. It is one of the main local players in the Saudi food delivery market, competing with platforms like Jahez. By 2023, Hunger Station and Jahez together dominated around 70% of the Saudi food delivery market.
- Keeta
- Keeta is Meituan's overseas food delivery platform, launched in May 2023 in Hong Kong and later expanded to Saudi Arabia. It captures market potential through aggressive pricing strategies and high service standards. In Saudi Arabia, Keeta plans to invest 1 billion Riyal, aiming to cover every city by the end of 2025. The service utilizes free delivery and discounts to attract users, and it has been exploring further expansions in other international markets.
- Pizza Hut
- The article mentions that Meituan's drones in Dubai are collaborating with Americana, the local operator of chains like Pizza Hut and KFC, for delivery services.
- Americana
- According to the article, Americana is a local operator of chain restaurants in Dubai, including Kentucky Fried Chicken (KFC) and Pizza Hut. They collaborate with Meituan's unmanned aerial vehicle (UAV) service for delivery operations.
- Talabat
- Talabat is a major local food delivery platform in the Middle East. It is one of the key players in the region's food delivery market, alongside local and international competitors. The article notes that Talabat is part of the diverse collection of companies competing in the Middle East's expanding food delivery sector, which includes other notable platforms like Jahez and Hunger Station.
- Jahez
- Jahez is one of the major local food delivery platforms in Saudi Arabia, alongside Hunger Station. As of 2023, it is considered a dominant player in Saudi Arabia's food delivery industry, holding a substantial market share along with Hunger Station. The two platforms together account for 70% of the food delivery market in Saudi Arabia.
- May 22, 2023：
- Keeta launched in Hong Kong, marking Meituan's first step toward overseas expansion
- October 2023：
- Keeta's service area covered the entire territory of Hong Kong
- November 2023：
- Keeta accounted for approximately 30.6% of the total food delivery orders in Hong Kong
- February 2024：
- Meituan's founder and CEO, Wang Xing, announced an organizational restructuring to prioritize overseas operations
- March 2024：
- Keeta's market share in Hong Kong had risen to approximately 44%, surpassing Foodpanda
- September 2024：
- Keeta first tested its services in the small town of Al Kharj near Riyadh, Saudi Arabia
- October 2024：
- Keeta expanded its operations to Riyadh, the capital of Saudi Arabia
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