Chinese food delivery and life services giant Meituan saw its revenue surge 28% to RMB 62.6 billion ($8.7 billion) in the third quarter of 2022, helping the company finally achieve a net profit after almost two years of losses. Meituan’s profit of RMB 1.2 billion in the June-September period was mainly attributed to a significant turnaround in its new initiatives and strict cost control measures. Operating losses from new initiatives, which include Meituan Select as well as its group buying services, narrowed to RMB 6.8 billion from RMB 10 billion during the same period last year. Meanwhile, despite the quarter being marked by Covid-related lockdowns in multiple cities, the Beijing-based company’s core local commerce revenue, which consists of food delivery, in-store, and hotel and travel services, rose by 24.6% year-on-year to RMB 46 billion. Meituan’s chairman and CEO Wang Xing said on an earnings call on Friday that given the “current macro environment,” the company would look to develop its overseas business in the coming months through small investments rather than making a big push into international markets. [Meituan]
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