Meituan, a Chinese meal delivery company, reported a 20% increase in quarterly revenue, reaching 88.5 billion yuan (US$12.2 billion) for the December 2024 quarter, slightly exceeding analysts’ expectations.

The company recorded a net income of 6.2 billion yuan (US$854.96 million), driven by strong performance in its core restaurant delivery service despite rising competition and economic challenges in China.

It has leveraged government stimulus measures to boost consumer confidence.

To counter domestic market slowdown, Meituan is expanding internationally through its Keeta app, which has gained popularity in Hong Kong and entered Saudi Arabia in September 2024. By January 2025, it reached one million weekly active users.

Domestically, the company faces competition from JD Takeaway and is using subsidies to retain merchants and users, potentially impacting profit margins.

Beyond food delivery, Meituan is investing in grocery retail, group-buying, live-streaming, and drone technology.

Its Keeta Drones unit secured an operational license in the UAE and is exploring drone delivery in Hong Kong. However, analysts expect losses from these new ventures in 2025 and beyond as the company prioritizes international growth and innovation.

Recent Meituan developments