Meituan: Dominating China’s Local Services Market with Scalable Growth and Expanding Profitability

Meituan: 3690 HK, MPNGY US

Good Evening,

We are rejoicing at Panda HQ. We have finally gotten to the point of finishing the overview of the internet names. We are wrapping up with a post on Meituan, the leading company bridging the gap between online and offline. Local marketplaces, food delivery and on-demand retail, all of this in Meituan in China. We’ve talked about in them in passing when discussing DiDi earlier in the year, and today we’re giving them their own writeup in the context of the rest of the internet sector.

This report closed the book on the sector, and is thus paywalled much like the rest of the series, with the exception of Alibaba. The list so far is:

• PDD 0.00%↑ Pinduoduo, owenrs of Temu

• NTES 0.00%↑ NetEase, the gaming company

• BABA -3.50%↓ Alibaba the China online shopping pioneer (free)

• BIDU -0.13%↓ Baidu the search engine aka the google of china

• $700.HK Tencent the owners of WeChat the mega app

• JD -4.71%↓ JD.com the online retailer and a logistics company

• $1024 HK Kuaishou the mini-video service and advertsing platform

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This weekend we will offer the customary Weekly Wrap and Portfolio Review features and starting form next week we’ll be working on a brand new sector: Robotics. This will likely mean an article a week, as we’re diving in deep and learning new tech and trends. We’re very excited for it!

A reminder: Nothing in this Substack is Investment Advice. This information is provided for informational purposes only and does not constitute financial, investment, or other advice. Any examples used are for illustrative purposes only and do not reflect actual recommendations. Please consult a licensed financial advisor or conduct your own research before making any investment decisions. The authors, publishers, and affiliates of this content do not guarantee the accuracy, completeness, or suitability of the information and are not responsible for any losses, damages, or actions taken based on this information. Past performance is not indicative of future results.

Lets dive in to Meituan!

Meituan was founded in 2010 by Wang Xing as a group-buying platform, initially modeled after Groupon. However, recognizing the potential of local services and online-to-offline (O2O) commerce, the company quickly pivoted towards a broader ecosystem that integrated food delivery, travel, retail, and lifestyle services. Over the years, Meituan expanded beyond discount-based transactions and merchant deals, positioning itself as China’s largest local services providerwith a comprehensive suite of offerings catering to both consumers and businesses.