- Meituan’s food delivery service KeeTa captured 37% of Hong Kong’s market just 8 months after entering it.
- Powered by aggressive hiring and subsidies, KeeTa trails only Delivery Hero’s Food Panda in the city.
- Overseas expansion tests Meituan’s capability before further global attempts.
KeeTa’s rapid rise in Hong Kong
Just 8 months after entering Hong Kong, according to December data, Meituan’s food delivery service KeeTa has rapidly captured the second largest market share at 37%, trailing only Delivery Hero’s Food Panda.
This remarkable growth for KeeTa, meaning “cheetah” in Chinese, signals early success for Meituan’s first major overseas expansion beyond mainland China.
Powered by aggressive hiring and subsidies, KeeTa widened delivery coverage across Hong Kong’s most affluent districts since its neighborhood rollout last May.
The growth strategy echoes Meituan’s domestic playbook, making it China’s food delivery leader with Tencent’s backing.
KeeTa holds a 21% market share – less than Foodpanda’s 54% – partly due to a lack of grocery and pickup services.
Meituan’s foreign expansion play
The overseas move aligns with Meituan seeking new revenue amid China’s sluggish consumption rebound after COVID-19.
While small, the Hong Kong delivery market provides a launching pad to hone operations.
However, KeeTa’s market share lead for deliveries relies on heavy subsidies that may not be sustainable in the long term once pulled back.
With over 1.3 million local app downloads, KeeTa wants to maintain 30%+ order volume growth. Yet its average order value lags behind Food Panda and Deliveroo.
Challenges and opportunities
While unlikely to significantly impact total revenue, the unit’s expansion tests Meituan’s capability before further globalization attempts.
Analysts say Meituan must balance overseas potential with profitability, keeping in mind that customers easily switch once incentives dry up.
Before more international growth, Meituan may first focus on challenges in existing Chinese divisions.
