Chinese food delivery giant Meituan outpaced market expectations with a robust 22.4% year-on-year increase in third-quarter revenue, reporting 93.58 billion yuan ($12.94 billion). The results, disclosed on Friday, showcase Meituan’s resilience in navigating China’s sluggish consumption environment.
Net profit for the quarter surged to 12.86 billion yuan, a sharp rise from 3.59 billion yuan during the same period last year. The company’s ability to cater to price-sensitive consumers through affordable and discounted offerings has proven pivotal in maintaining growth despite cautious spending habits across the country.
Diversified Services and Core Commerce Drive Growth
Meituan’s app ecosystem, which includes services such as food delivery, bike-sharing, ticket booking, and maps, played a significant role in the revenue uptick. Revenue from the core local commerce segment—which encompasses food delivery and Meituan Instashopping—grew by 20.2% to 69.37 billion yuan. Meanwhile, its new initiatives segment recorded an impressive 28.9% growth, bringing in 24.2 billion yuan.
AI Investments and Market Leadership
The company continues to strengthen its position through strategic investments, including its 2022 acquisition of Light Year, an artificial intelligence startup founded by Meituan co-founder Wang Huiwen. The $281 million deal aligns with the broader push by Chinese tech firms to deepen their AI capabilities.
Meituan holds a commanding 69% share of China’s 1 trillion yuan food delivery market, according to research firm ChinaIRN, further cementing its status as the nation’s largest delivery platform.