Meituan, the Chinese super-app for local services

Administrateur
4 days ago
3 min read

Meituan is a Chinese “super-app” for local services, founded in Beijing in 2010 by Wang Xing. The company merged in 2015 with the review platform Dianping (then known as Meituan-Dianping), before reverting to the name “Meituan” in September 2020. Its model connects local merchants and consumers through a single application. It offers group-buy deals (local discount vouchers), meal and grocery delivery, hotel and travel bookings, urban mobility (Mobike bike-sharing, etc.), as well as various on-demand services. Listed on the Hong Kong Stock Exchange (ticker 3690) since its 2018 IPO, Meituan has expanded its scope and, in 2023, became active outside mainland China for the first time via its “Keeta” platform in Hong Kong.

Shareholding

Meituan’s share register is dominated by its founders and strategic investors. Wang Xing, founder and CEO, owns about 9.6 % of the shares and controls around 44 % of voting rights. Neil Shen (Sequoia China) holds roughly 1.7 %. Global investor Prosus (parent of Naspers) commands nearly 4 %. Tencent Holdings, once a major stakeholder (~17 % in early 2022), distributed almost all its Meituan shares to its own shareholders at the end of 2022, reducing its stake to a negligible level. Other institutional investors include Baillie Gifford, BlackRock, and others. Overall, Meituan’s shareholding remains largely Chinese and internally controlled, with Wang Xing as the de facto majority leader.

Markets and Business Segments

Meituan primarily operates in mainland China, serving over 2,800 counties and cities with an extensive logistics network. Its core business is food delivery—where it held over 65 % market share in 2021 against Alibaba’s Ele.me. Around this flagship activity, the app also covers:

Local services: discount vouchers and reviews for restaurants, beauty salons, entertainment, healthcare, and everyday services (inspired by the Groupon/Yelp model).
Hotel and travel: booking hotels, transport tickets, and leisure activities.
Urban mobility: bike-sharing (Mobike) and autonomous vehicle trials.
Quick commerce: ultra-fast delivery (“Meituan Instashopping”) for groceries, pharmacy goods, and other items, active in over 200 cities.

In 2023–2024, Meituan initiated international expansion: after Hong Kong, it announced in early 2025 a BRL 5.6 billion (~USD 1.1 billion) five-year investment to launch Keeta in Brazil, targeting the local leader iFood.

Financial and Stock Market Performance

From 2019 to 2024, revenue grew from RMB 97.5 billion to RMB 337.6 billion. Profitability was more uneven: modest profit in 2019, losses in 2021–2022, then a return to profit in 2023 and 2024 thanks to cost control and post-COVID consumption rebound. Net margin rose from near zero to around 5 % in 2023 and 10.6 % in 2024. Operating (EBIT) margin improved to 7.6 % in Q4 2024 from 2.4 % a year earlier.

On the market, Meituan’s share price was volatile: a strong debut post-IPO was followed by a sharp drop in 2021–2022 amid stricter Chinese regulation (including a RMB 3.4 billion antitrust fine in October 2021). Since 2023, the stock has gradually recovered, backed by renewed domestic consumption and international prospects. Meituan remains one of the largest Chinese tech assets accessible to global investors via the Stock Connect programs.

Outlook

Meituan targets medium-term growth through technological innovation and service expansion. Wang Xing describes 2025 as a “great year,” announcing tighter integration of delivery and in-store sales and accelerated international rollout. The company is heavily investing in artificial intelligence—allocating billions of RMB to AI chips and infrastructure—while testing delivery drones and autonomous vehicles. New instant-delivery and robotic logistics services seek to boost efficiency and market share. Early successes in Hong Kong and the Brazilian plan point to promising geographic diversification, and local initiatives (fresh groceries, urban services) offer further growth drivers.

Risks and Opportunities

Competition: Alibaba (Ele.me), Pinduoduo (Duoduo Maicai) and JD.com increase subsidies to merchants, pressuring Meituan’s margins.
China dependence: market saturation and slower macro growth could cap expansion.
Regulation: evolving antitrust rules, labor protections for couriers, and data-privacy requirements may raise costs.

Opportunities abound: China’s digital consumer base continues to expand, AI and automation promise better margins and user experience, and untapped international markets represent significant upside. Internal synergies—such as unified loyalty programs and integrated sales/delivery platforms—should enhance user retention and scale economies.

Conclusion

Thanks to its scale, logistics expertise, and AI investments, Meituan is well-positioned to strengthen its domestic leadership and enter new international markets. It must, however, navigate intense competition and a stringent regulatory environment to fully realize its potential.