Meituan forms Duopoly, cornering most of the market

Meituan pulled up 2% in Hong Kong stocks in the afternoon Of November 3rd and closed with 0.48% up as of the day. In the following two days, Meituan rose by 6% and 5.04%, respectively. As of the close of trading on the 5th, Meituan’s share price closed at $42.43, its market value reaching a record high of over $245 billion.

The results of Meituan’s recent quarterly report shows that Meituan Dianping’s Q3 revenue reached $4.1 billion, showing an increase of 44.1% from $2.8 billion in the same period last year. I

n the third quarter, Meituan-Dianping maintained sustained growth in its catering, food delivery, in-store, hotel, and travel businesses, which led to a year-on-year increase of 33.6% in total transaction value to $29.3 billion.

Meituan CEO Xing Wang said, “We have once again had a strong growth quarter. The rapid increase in revenue means that Meituan has created more value for merchants and users, also confirming that China is still the world’s most growable consumer market, we have full confidence in the long-term growth of the Chinese market”.

iiMedia Consulting predicts that in 2020, the scale of China’s food delivery market will exceed $45.1 billion. The number of online food delivery personnel in China will reach 477 million people, increasing by 14.7% from 2019.

As of the second quarter of 2020, Meituan and Ele.me have captured nearly 95% of the takeaway market, gradually forming a duopoly.