In Q1 2024, Meituan’s food delivery app, KeeTa, secured 43% of the Hong Kong food delivery market, outperforming competitor Foodpanda. This growth has been attributed to an effective marketing campaign, growing customer loyalty, and a user-friendly interface.
Despite facing challenges due to the pandemic, successful strategies such as partnering with numerous restaurants and offering quick service paid off. Meanwhile, Foodpanda’s market share fell to 39%, indicating a shift in customer preference. The remaining market share is split between other smaller players.
However, in terms of economic value, Foodpanda led the market with a 47% share of the aggregate goods value. KeeTa and UberEats made up 27% and 13%, respectively.
KeeTa’s leading position in Hong Kong’s food delivery
Other minor delivery service providers accounted for the remaining 13%.
Indifferent to reliance on short-term promotional tactics, Foodpanda emphasizes its commitment to long-term, consistent growth. The company has partnered with over 14,000 restaurants and aims to build authentic customer relationships, focusing on added value rather than immediate profit.
In response to this success, Meituan CEO, Wang Xing, stated plans to expand into further markets, particularly Riyadh, Saudi Arabia. The CEO acknowledged the challenges of operating in Saudi Arabia but expressed confidence in the company’s ability to overcome them.
However, this proposed expansion poses potential challenges to Meituan’s valuation. The unpredictable political and economic climate in Saudi Arabia and the competitive nature of its market could present obstacles. Additionally, the costs associated with market expansion can often result in short-term losses.
Despite these potential difficulties, equity analyst Kai Wang believes Meituan’s innovative approach and technological solid capabilities could provide a significant competitive advantage. He underlined the importance of strategic partnerships in navigating regulatory hurdles and stressed prioritizing long-term sustainability over immediate gains.
