Chinese delivery giant explores acquisition of delivery hero’s regional operations
Chinese food delivery giant Meituan is in early discussions to acquire Delivery Hero’s Southeast Asian operations, including Foodpanda, marking the company’s first potential expansion beyond mainland China and Hong Kong as part of wider global ambitions amid escalating competition in its core market.
Meituan is looking to expand globally: Talks of acquisition in Southeast Asia
Chinese food delivery giant Meituan is in discussions to acquire Delivery Hero’s Southeast Asian food delivery operations, including the Foodpanda brand, according to sources familiar with the matter.
The talks are still in early stages, and a final deal remains uncertain. However, Meituan’s interest signals its intention to enter and compete in Southeast Asia’s rapidly growing food delivery sector.
Meituan has dominated the food delivery landscape in China since its founding in 2010, operating in over 2,800 cities. Acquiring Delivery Hero’s Southeast Asia business would mark the company’s first expansion beyond mainland China and Hong Kong.
Meituan’s strategic move reveals ambitions beyond China
Industry experts view this potential deal as part of Meituan’s wider global ambitions amid escalating competition in its core Chinese market from rivals like Ele.me and Kuaishou. With its large and digitally savvy population, Southeast Asia offers rich expansion opportunities.
Delivery Hero has been seeking a partial sale of its Southeast Asia operations, including in Singapore, Malaysia, Thailand, and other regional countries, as growth has slowed post-pandemic.
Delivery Hero’s exit from Southeast Asia is a changing landscape after the pandemic
Should the deal materialize, Meituan would likely compete fiercely with regional leader Grab, which has rapidly gained market share in food delivery. Grab recently attained profitability in its core deliveries segment.
The potential Meituan and Delivery Hero tie-up reflects the growing trend of Chinese tech giants looking overseas for growth, with Tencent also recently expanding offerings abroad. It also highlights the intensifying competition to dominate Southeast Asia’s surging online services market.
