As competition in the Chinese food delivery sector heats up, Chinese food delivery company Meituan Dianping announced a 44% rise in revenues in Q3 2019, beating expectations.
Meituan Dianping apps connect consumers to local food businesses. Back in 2018, the company also acquired local transportation company Mobike to offer transport services.
Research by Trustdata revealed that the firm had increased its share of the Chinese food delivery market to around 66% as of September 2019 – that’s a 6% increase from September 2018.
Tencent is a financial investor in the company. Meituan reported revenues of approximately $3.5 billion (27.49 billion yuan) for the third quarter, up from 19.1 billion the previous year.
“Strong execution enabled Meituan to sustain [the] growth momentum, improve unit economics, and enhance the market position of core businesses,” said Wang Xing, the chairman and chief executive of the company.
Revenues from its core food delivery business rose 39.4% from the previous year.
Gross transaction volumes for the quarter were up 33.6% to 194.6 billion yuan.