Meituan, China’s local services platform, is accelerating its global expansion with a renewed focus on grocery retail, international markets, and artificial intelligence, CEO Wang Xing announced in a recent internal meeting. The strategic shift comes as the company marks its 15th anniversary, aiming to diversify beyond its core food delivery and group-buying businesses.
Why it matters: Meituan’s current business landscape is more complex than ever. As consumers tighten their budgets, increasing numbers turn to gig work as delivery riders, and restaurant owners struggle to stay afloat, Meituan continues to report record profits. This has intensified public scrutiny on how the platform balances growth with social responsibility. Wang Xing’s move towards grocery retail, international expansion, and technology investment comes as questions around worker welfare – exemplified by the recent debate over delivery riders’ social security – are at the forefront. How Meituan navigates these tensions will shape its future and influence broader discussions on platform economy governance in China.
Details:
- The company’s push into grocery retail aligns with its long-term mission to “help people eat better and live better,” encompassing both self-operated fresh food delivery and marketplace-based retail services.
- Among the three priorities Wang Xing has set, international expansion is progressing the fastest. Meituan’s overseas food delivery platform, Keeta, is rapidly expanding in Saudi Arabia. After reaching the country’s nine largest cities and nearly half its population, Keeta is now considering entry into Kuwait and the UAE. To solidify its presence in the Middle East, Meituan has outlined a three-year plan – aiming to expand Keeta across all six Gulf Cooperation Council (GCC) countries, including Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain, leveraging the Saudi market experience.
- AI remains a critical focus as Meituan seeks to leverage artificial intelligence to build an integrated and efficient local commerce ecosystem.
Context: Meituan, China’s leading on-demand service platform, has seen rapid transformation over the past decade. Over the years, it has maintained its position as a dominant player in China’s hyper-competitive local services market, despite pressure from rivals like Alibaba, JD.com, and Douyin.
- As Meituan enters its second decade, the company is shifting its focus beyond domestic competition. With food delivery penetration in China already high, international expansion presents a new growth opportunity. The Middle East, particularly Saudi Arabia, has emerged as a strategic market due to its young, tech-savvy population and strong consumer spending power. By scaling Keeta up in the region, Meituan aims to establish a global presence.
- At the same time, Meituan’s increased profitability has brought new challenges. In 2023, the company reported record earnings, but this has coincided with growing concerns over its labor practices and platform economics. The ongoing debate over social security for delivery riders reflects a broader societal expectation for platforms like Meituan to take on more responsibility in worker welfare. As Meituan pursues growth in new markets, how it balances profitability, expansion, and social responsibility will shape its next decade.
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