Meituan Hits Record Daily Orders in Q3 but Anticipates Slower Growth Ahead

Chinese on-demand delivery behemoth Meituan has achieved a significant revenue growth of 22.1%, reaching RMB 76.47 billion in the previous quarter. The surge in revenue can largely be attributed to the company's core local commerce operations, which include vital services such as food delivery and Meituan Instashopping. Notably, the local commerce segment soared by 24.5%, hitting RMB 57.69 billion. In an astonishing peak during August, Meituan's food delivery orders topped at 78 million per day, marking the company's highest recorded daily volume, and reflecting a doubling since three years ago.

Projected Slowdown in Q4

Despite the impressive figures, Meituan's leadership is bracing for a deceleration in growth for the fourth quarter. This forecasted slowdown is attributed to multiple factors, including broader macroeconomic conditions and unexpectedly mild winter weather, which may dampen food delivery demand. To counteract these challenges, Meituan plans to ramp up its marketing efforts to spur customer demand.

Streamlining Future Strategy

On the operational front, Meituan reported a 24.5% reduction in operating loss within its 'new initiatives' section, indicating progress towards profitability. During an earnings call, CEO Wang Xing assured investors of a 'clear path' to turning those segments profitable. Emphasizing prudence, Wang explained that Meituan, a 'rational' entity, will readily adjust its strategies for new initiatives that may not show long-term profitability potential.

Meituan, Revenue, Growth