Chinese food delivery and services company Meituan reported an 18.1% year-on-year revenue increase for the first quarter of 2025.

The company generated 86.6 billion yuan (around US$12 billion) in revenue for the three months ending March 31.

This is up from 73.3 billion yuan (around US$10.2 billion) during the same period last year.

The company attributed its revenue growth to efforts focused on offering cost-effective options for consumers in China.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ China’s food delivery market is experiencing massive growth despite economic headwinds

Meituan’s 18.1% revenue growth reflects its dominant position in China’s expanding food delivery sector, where it controls a substantial market share.

The company generated $38 billion of China’s $46.6 billion food delivery market in 2023, making it the largest food delivery platform not just in China but globally by revenue 1.

This dominance comes amid projections that China’s online food delivery market will grow from $81.9 billion in 2024 to $197.9 billion by 2033, representing a compound annual growth rate of 9.79% 2.

The robust growth in food delivery contrasts with broader consumer caution in China, where surveys show consumers are increasingly focused on essential spending and value-seeking behavior 3.

Meituan’s strategy of targeting cost-conscious consumers with value-for-money products aligns perfectly with this shift in consumer sentiment, as Chinese shoppers report greater price sensitivity and willingness to switch brands based on price and functionality 4.

2️⃣ Intensifying competition is reshaping China’s food delivery landscape

Meituan’s performance comes amid heightened regulatory scrutiny and competitive pressures in China’s food delivery sector.

The State Administration for Market Regulation (SAMR) recently summoned major platforms including Meituan, JD.com, and Alibaba’s Ele.me to address competition issues, emphasizing adherence to e-commerce, competition, and food safety laws 5.

This regulatory intervention followed escalating competition as JD.com aggressively entered the food delivery space, creating a three-way battle between tech giants backed by China’s largest companies – Meituan (Tencent-backed), Ele.me (Alibaba-backed), and JD.com 625.

Recent Meituan developments