Meituan: Strong Growth Driven by Local Commerce and Delivery in 2024
- Administrateur
- Sep 25, 2024
- 2 min read
Meituan, founded in 2010, is one of China's largest technology platforms, offering a wide array of services such as food delivery, hotel bookings, and retail. Over the years, Meituan has transformed local commerce, allowing consumers to access daily services seamlessly through its platform. The company's technological innovation has helped it become a key player in China’s on-demand service market.
H1 2024 Financial Results
Meituan experienced robust growth in the first half of 2024, with revenues increasing by 25% in Q1 2024, reaching RMB 73.3 billion (approximately $10.1 billion). This was largely driven by the on-demand delivery services, which recorded a 27.4% rise in revenues, contributing RMB 54.6 billion to the total. Meituan's strength in the local commerce sector highlights the resilience of its business model, especially in navigating China's competitive market.
In terms of profitability, Meituan saw its net profit soar by 59.9% to RMB 5.37 billion, and its operating profit rose by 45.3%, totaling RMB 5.2 billion. The company’s ability to improve margins while growing its user base and expanding its offerings contributed to these positive results.
Expansion in Local Commerce and New Initiatives
A key driver of Meituan’s growth is its local commerce segment, which includes food delivery, travel bookings, and in-store services. Meituan has innovated in delivery models, such as the introduction of Branded Satellite Stores, enhancing delivery services without requiring in-store dining. This innovation attracted more consumers and solidified Meituan’s position in the market.
Moreover, Meituan's Meituan Select initiative, a group-buying service for local communities, saw notable revenue growth. This service helps reduce delivery costs and improve operational efficiency, leading to a 45.2% reduction in operating losses in this segment.
Challenges and Future Strategies
Despite its strong growth, Meituan faces challenges in the highly competitive Chinese market. Rivals such as Alibaba and JD are intensifying their focus on local commerce and delivery services, increasing competitive pressure. However, Meituan’s continuous innovations and ability to adapt its business models give it an edge in navigating these challenges. The company's focus on expanding its local commerce offerings and investing in new delivery infrastructure ensures that it remains competitive.
You will find in the attachment to this article the presentation file of Meituan.
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