Meituan's first-quarter revenue jumps 18% amid increased competition
Meituan posted an 18.1 per cent year-on-year surge in revenue for the first quarter, as it seeks to maintain its dominant position on the mainland in the food delivery market amid new competition.
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Meituan's revenue for the three months through March was 86.6 billion yuan (US$12 billion). Net profit reached 10.1 billion yuan, up 87.3 per cent year on year.
The Beijing-based firm said in a statement that its instant commerce business 'Instashopping maintained robust growth trajectory, winning increasing consumer recognition and showcasing the immense potential of on-demand retail'.
Meituan's results came in above expectations of 85.44 billion yuan in revenue and 8.63 billion yuan in profit, according to analysts polled by Bloomberg, offering a positive start to 2025 as it faces heated competition in the so-called instant commerce market, which in addition to food makes a slew of everyday consumer items available for delivery by courier, often within an hour.
Chinese e-commerce giant
JD.com moved into food delivery in February, after already offering instant delivery of other items. Rival
Alibaba Group Holding , owner of the Post, has also doubled down on its instant commerce business, leveraging its Ele.me food delivery riders and
Taobao shopping app.
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Both companies have initiated aggressive campaigns through the use of subsidies and other promotions to grab a slice of the market that has long been dominated by Meituan.
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