Chinese food delivery giant Meituan is set to make its debut in Riyadh, the capital of Saudi Arabia, as it looks to tap into the Middle Eastern market. Despite facing competition from local rivals, Meituan is betting on the region’s growing economy and plans to use its proven subsidy-heavy strategy to attract users and delivery workers.
The move into Riyadh is part of Meituan’s broader international expansion plans, with the company eagerly exploring new markets outside of China. Meituan’s CEO, Wang Xing, recently assumed direct control of the company’s overseas ventures, emphasizing the importance of global growth.
Meituan’s entry into the Middle East follows in the footsteps of other Chinese tech companies that have found success in the region. With less political scrutiny compared to Western markets, the Middle East offers a favorable environment for Chinese firms to expand. Popular Chinese apps like TikTok, Yalla Group, and Joyy’s Bigo Live have already gained a strong following in the region.
While Meituan’s foray into Riyadh presents exciting opportunities, the company’s plans remain subject to change. The company has considered other Middle Eastern markets in the past and may adjust its strategy accordingly.
As Meituan enters the Riyadh market, it is expected to utilize its KeeTa platform, which has already proven successful in Hong Kong. KeeTa, named after the fast-moving cheetah, quickly rose to become the second-largest food delivery platform in Hong Kong, surpassing competitors like Deliveroo.
Despite its ambitions for international expansion, Meituan faces challenges at home as rivals like Douyin and Ele.me threaten its market share. Meituan’s fourth-quarter core local-commerce margin fell below 15%, prompting the need for revenue growth to maintain a competitive edge.
As Meituan ventures into Riyadh, it embarks on a new chapter of global expansion, armed with its subsidy-driven strategy and cash reserves. The company will leverage its experience and seek to establish a strong presence in the Middle Eastern market, which promises growth and potential opportunities.
FAQ Section:
Q: What is Meituan?
A: Meituan is a Chinese food delivery giant and local services platform.
Q: Why is Meituan entering Riyadh?
A: Meituan is looking to tap into the Middle Eastern market and take advantage of the region’s growing economy.
Q: What strategy will Meituan use in Riyadh?
A: Meituan plans to use its proven subsidy-heavy strategy to attract users and delivery workers.
Q: Is Meituan expanding internationally?
A: Yes, Meituan has broader international expansion plans and is exploring new markets outside of China.
Q: Are there other successful Chinese tech companies in the Middle East?
A: Yes, popular Chinese apps like TikTok, Yalla Group, and Joyy’s Bigo Live have gained a strong following in the region.
Q: What is Meituan’s food delivery platform called?
A: In Riyadh, Meituan is expected to utilize its KeeTa platform, which has already been successful in Hong Kong.
Q: What challenges does Meituan face?
A: Meituan faces competition from rivals like Douyin and Ele.me, and its market share has been threatened. Its fourth-quarter core local-commerce margin fell below 15%.
Key Terms:
1. Meituan: Chinese food delivery giant and local services platform.
2. Riyadh: Capital city of Saudi Arabia.
3. Subsidy-heavy strategy: Meituan’s strategy of offering subsidies to attract users and delivery workers.
4. Middle Eastern market: The market in the Middle East region.
5. KeeTa: Meituan’s food delivery platform.
6. Core local-commerce margin: A financial metric measuring the profitability of Meituan’s local services business.
Suggested Related Links:
1. Meituan Official Website
2. TikTok Official Website
3. Yalla Group Official Website
4. Bigo Live Official Website