On May 22, 2023, Meituan, the Chinese food delivery giant, launched its sister app called KeeTa in Hong Kong, marking its first expansion outside of mainland China. However, analysts are skeptical about KeeTa’s ability to gain a significant market share in Hong Kong.
Shawn Yang, managing director of Blue Lotus Research Institute, believes that the Hong Kong market is not large enough for Meituan to invest heavily in. Despite launching in residential areas like Mong Kok and Tai Kok Tsui, KeeTa plans to cover the entire Hong Kong market by the end of the year.
Meituan currently faces increased competition in its home market from players like TikTok’s sister Douyin, and the post-Covid recovery in China is fading. However, Meituan is the market leader in China’s food delivery sector, with almost 70% of the market share.
KeeTa received positive feedback and exceeded expectations in its initial launch, which encouraged its expansion to other districts in Hong Kong. Kai Wang, a senior equity analyst for Morningstar Asia, believes that KeeTa’s expansion into Hong Kong will not have a significant impact on Meituan’s earnings, as they already have over 678 million users in China.
Hong Kong’s food delivery market is currently dominated by Foodpanda and Deliveroo, with shares of 64% and 36% respectively. KeeTa aims to challenge these players by offering attractive promotions, such as HK$300 worth of free vouchers for new users, set meals from HK$60 including delivery fees, and an “on-time promise” policy.
While the food delivery market in Hong Kong remains lukewarm, KeeTa has the potential to tap into Meituan’s expertise and compete effectively with existing players. As Meituan’s first venture outside of mainland China, Hong Kong serves as a testing ground for potential international expansion in the future.
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