Meituan to Buy Dingdong’s China Business for $717 Million
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Meituan has agreed to acquire the Chinese business of rival Dingdong (Cayman) Ltd. for an initial $717 million in a strategic move to consolidate China’s competitive fresh grocery e-commerce market.
Under the terms of the agreement announced Thursday, Meituan will purchase all shares of Dingdong Fresh Holding Limited, a wholly owned subsidiary that oversees all of Dingdong's operations in China. The deal structure allows the seller to withdraw up to $280 million in dividends from the target group before Aug. 31, provided the unit retains at least $150 million in net cash. This provision suggests that the total value realized by the seller could reach about $997 million. Dingdong’s overseas business is excluded from the transaction and will be spun off prior to closing.
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- Meituan will acquire Dingdong's Chinese business for an initial $717 million; total value for Dingdong could reach about $997 million.
- Dingdong’s shares rose over 9% (Nasdaq), while Meituan’s shares closed up 1.79% (HK$573.3 billion valuation).
- Dingdong posted 12 consecutive quarters of non-GAAP profit by Q3 2025; Meituan reported an 18.6 billion yuan net loss in Q3 2025.
- Meituan
- Meituan is acquiring Dingdong (Cayman) Ltd.'s Chinese business for $717 million to strengthen its fresh grocery e-commerce position. This acquisition helps unify China's online grocery sector and enhance Meituan's retail supply chain. This is a strategic move for Meituan, which experienced a net loss of 18.6 billion yuan in Q3 2025 due to competition and investments in international markets.
- Dingdong (Cayman) Ltd.
- Dingdong (Cayman) Ltd., known as Dingdong Maicai (叮咚买菜) in Chinese, was founded in 2017. It operates a direct-to-consumer fresh food delivery model. After years of losses, Dingdong became profitable in 2024 and maintained 12 consecutive quarters of non-GAAP profitability by Q3 2025. Meituan has agreed to acquire Dingdong's Chinese business for an initial $717 million, with the total value potentially reaching $997 million.
- Dingdong Fresh Holding Limited
- Dingdong Fresh Holding Limited is the Chinese business of Dingdong (Cayman) Ltd., an online fresh grocery company founded in 2017. It operates a direct-to-consumer model with frontline warehouses for fast delivery. Meituan is acquiring Dingdong Fresh Holding Limited for an initial $717 million, consolidating China’s fresh grocery e-commerce market. After years of losses, Dingdong Fresh achieved its first full-year profit in 2024.
- Little Elephant Supermarket
- Little Elephant Supermarket is a rapidly expanding grocery brand owned by Meituan, a major player in China's online grocery sector. It is part of Meituan's new initiatives segment and has been a strategic focus for the company, which is adjusting its grocery strategy by expanding this brand while retreating from underperforming regions in its community group-buying business. Little Elephant Supermarket now operates nearly 1,000 stores across 20 cities, with agricultural product sales projected to exceed 20 billion yuan in 2025.
- 2017：
- Dingdong was founded.
- 2023：
- Dingdong retrenched, exiting markets like Sichuan and Chongqing to focus on profitability; Meituan last reported a quarterly loss before 2025.
- 2024：
- Dingdong achieved its first full-year profit, with a net income of 420 million yuan (non-GAAP).
- By Q3 2025：
- Dingdong posted 12 consecutive quarters of non-GAAP profitability.
- 2025：
- Meituan's Little Elephant Supermarket agricultural product sales expected to exceed 20 billion yuan.
- Q3 2025：
- Meituan posted a net loss of 18.6 billion yuan in its first quarterly loss since 2023; operating losses in the new initiatives segment widened to 1.3 billion yuan.
- As of February 2026：
- Meituan's Little Elephant Supermarket operated nearly 1,000 stores across 20 cities.
- February 5, 2026：
- Meituan announced the acquisition agreement to purchase Dingdong's Chinese business; Dingdong’s shares surged over 9% in pre-market trading; Meituan’s HK-listed shares closed up 1.79%.
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