Chinese food delivery giant Meituan expands into Hong Kong in search of new growth

Led by billionaire Wang Xing, Meituan has launched a food delivery service in Hong Kong, marking the first time the company offers deliveries to customers outside mainland China.

On Monday, the Beijing-based and Hong Kong-listed company officially launched Keta, a new food delivery brand for Asia’s financial hub. It will initially be available only in the Mong Kok and Tai Kok Tsui areas, but may expand to other parts of the Hong Kong market by the end of the year, according to a press release issued by the company.

In doing so, Meituan joins other Chinese web giants in seeking growth beyond the mainland China market. Just last week, earnings from internet giants such as e-commerce giant Alibaba and gaming and social media giant Tencent highlighted the uneven and slowing recovery in the world’s second-largest economy.

For example, Alibaba reported that its overseas business sales rose 29% year-on-year in the March quarter, but sales at its mainstay China unit declined and overall growth slowed as consumers refrained from ordering more. The rate remained at just 2%.

Meituan Wang, meanwhile, is resorting to a traditional strategy of subsidy spending to counter competition in Hong Kong. The company plans to distribute meal coupons and delivery discounts to attract users from the likes of Deliveroo and Delivery Hero SE’s Foodpanda. A slogan emphasizing securing the dollar) is posted.

And Meituan, which is set to report first-quarter results on Thursday, needs fresh growth to boost investor sentiment. Amid uncertainty in the Chinese economy, rising tensions with the U.S. and new competition from TikTok’s Chinese version of Douyin, which is testing a new food delivery service in the country, the company’s stock has fallen by a third of its value this year. Lost nearly 1. Wang, who now has a net worth of $9.8 billion, once vowed to hire up to 10,000 people, including posts in the shipping and marketing departments, to take on challenges in his home market.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *