Meituan, the Chinese on-demand local services giant, is gearing up for its first international expansion, with plans to launch its food-delivery platform in Riyadh, Saudi Arabia. This move comes amidst a slowdown in growth in its home market, prompting the company to seek new opportunities abroad. Meituan’s KeeTa app is set to make its debut in the Middle East, with Riyadh as its first stop, according to sources familiar with the matter.
The company’s expansion into Riyadh, one of the wealthiest cities in the region, follows a successful entry into Hong Kong in 2023. Meituan will face competition from local rivals such as Jahez International Co, Delivery Hero’s Talabat, HungerStation, and Uber Technologies-backed Careem. The move into Saudi Arabia comes as the country aims to become a tourism and commercial hub, presenting a promising market for Meituan’s services.
Meituan’s approach in the Middle East is likely to involve heavy subsidies to attract users and delivery workers initially. The company is expected to roll out its KeeTa platform in phases, focusing on specific districts at the beginning. Job openings for Riyadh have already been posted on LinkedIn and Meituan’s website, including positions for user acquisition and business development.
While Meituan has been actively planning its expansion into the Middle East, plans could still change, and the company may decide to delay its entry into the market. Nonetheless, the move into Riyadh marks a significant step in Meituan’s global expansion strategy, following its success in Hong Kong.
Meituan’s CEO, Wang Xing, has taken direct control of the company’s overseas businesses, highlighting the importance of international expansion for the company. With its cash reserves and cash flow from its domestic business, Meituan is well-positioned to break into new markets and drive growth outside of China.
Like other Chinese tech firms, Meituan is looking beyond its home market for growth opportunities, particularly in regions like the Middle East, where there is less political scrutiny compared to the United States and Europe. The company’s expansion into Riyadh signals its commitment to exploring new markets and diversifying its revenue sources amidst challenging economic conditions in China.
(Source: SCMP | Market Watch | Arab News)
