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Meituan's KeeTa App Dominates Hong Kong's Food Delivery Market, Surpassing Foodpanda

Meituan's KeeTa app captures 43% share of Hong Kong's food delivery market, surpassing Foodpanda with 37% share. Despite leading in order volume, KeeTa lags behind Foodpanda in terms of delivery order value. Meituan plans to launch KeeTa in Riyadh, Saudi Arabia, to compete with local rivals.

KeeTa App
Credit: SCMP

According to data released by local analytics firm Measurable AI, KeeTa captured an impressive 43% share of Hong Kong's food delivery market in the first quarter, while Foodpanda trailed behind with a 37% share.


This milestone comes as no surprise, considering KeeTa's previous success in dethroning Deliveroo as the second-largest food delivery player in Hong Kong. Meituan launched the app in the city in May last year, and since then, it has been steadily gaining traction and popularity among consumers.


Meituan's expansion into Hong Kong has proven to be a lucrative move, with the company reporting a significant 25.8% increase in revenue for 2023, reaching 276.7 billion yuan (US$38.29 billion). Despite the aggressive competition from Douyin, owned by ByteDance, Meituan managed to thrive in its home market.


However, while KeeTa leads in terms of order volume, Foodpanda still holds the upper hand in terms of the value of delivery orders in Hong Kong. Measurable AI's data reveals that Foodpanda commanded a 47% market share by gross merchandise value in the first quarter, while KeeTa accounted for 27%.


Looking ahead, Meituan has ambitious plans to expand its KeeTa platform beyond Hong Kong. Co-founder, chairman, and CEO Wang Xing announced that he would take control of the company's overseas business, indicating a strong focus on international growth. Meituan is actively evaluating opportunities in other markets and is set to launch KeeTa in Riyadh, the capital of Saudi Arabia.


The move into Riyadh will pit KeeTa against local rivals such as Jahez International, Talabat (owned by Delivery Hero), HungerStation, and Careem (backed by Uber Technologies). As Saudi Arabia aims to become a tourism and commercial hub, Meituan sees potential in tapping into this market.


However, analysts caution that Meituan's expansion into Riyadh may not have an immediate impact on the company's valuation. The long-term uncertainty, market positioning, and potential losses associated with this overseas venture could limit its material contribution to Meituan's current value.


Furthermore, Meituan faces challenges in its home market as China's anti-monopoly rules prohibit exclusive contracts that previously helped the company dominate the food delivery market. This puts pressure on Meituan's margins and necessitates a shift in strategy.


In Riyadh, Meituan is expected to face tough competition from incumbents who are already well-established in the market. An incentive-driven strategy may only be effective in the short term until the vouchers stop due to cash burn.

 
  • Meituan's KeeTa app captures 43% share of Hong Kong's food delivery market, surpassing Foodpanda with 37% share.

  • Despite leading in order volume, KeeTa lags behind Foodpanda in terms of delivery order value.

  • Meituan plans to launch KeeTa in Riyadh, Saudi Arabia, to compete with local rivals.


Source: SCMP

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