Text/Block TechnologyEditing/Block TechnologyprefaceCan't beat the 'local snake'? Meituan's situation in Hong Kong is worrying! Market share is only 20%KeeTa's Challenges in the Hong Kong MarketWith the launch of Meituan's takeout platform KeeTa in Hong Kong and its trial operation, people are looking forward to its market performance. However, the situation in the Hong Kong takeout market has left Meituan feeling helpless

Text/Block Technology

Editing/Block Technology

preface

Can't beat the 'local snake'? Meituan's situation in Hong Kong is worrying! Market share is only 20%

KeeTa's Challenges in the Hong Kong Market

With the launch of Meituan's takeout platform KeeTa in Hong Kong and its trial operation, people are looking forward to its market performance. However, the situation in the Hong Kong takeout market has left Meituan feeling helpless.

According to reports, within a month of landing in Hong Kong, KeeTa only took 20% of the market share in its region, which is still a significant gap compared to the mainstream market platforms Foodpanda and Deliveroo. This reflects the severe competitive situation in the Hong Kong market.

However, the overall penetration rate of the Hong Kong takeout market is relatively low. According to statistical data, the compound annual growth rate of online delivery orders in Hong Kong is 26.9%, and the penetration rate of the delivery market is only about 4% to 5%, accounting for less than 0.5% of the entire catering market. In contrast, the potential of the Hong Kong takeout market remains enormous.

Due to the convenience of dining out among Hong Kong residents, their frequency and willingness to use takeout food are not as high as in mainland China. In addition, the delivery fees in Hong Kong are relatively high, the prices are expensive, and the delivery speed is slow, resulting in poor user experience. These issues have become pain points in the Hong Kong takeout market and need to be addressed.

KeeTa's main competitors are Foodpanda and Deliveroo, two delivery platforms that share 90% of the Hong Kong market, forming a clear "monopoly" pattern.

In addition, some small delivery platforms that previously entered the Hong Kong market also faced difficulties, including UberEats. These platforms have all exited the Hong Kong market due to low market share and business development not meeting expectations.

Meituan's Strategy in the Hong Kong Market

At the beginning of its entry into the Hong Kong market, Meituan adopted a similar strategy of "burning money for users" as in mainland China, launching various promotional activities to attract customers and riders. Meituan has provided multiple coupons for newly registered users, including full discount coupons and freight reduction coupons. In addition, Meituan has also increased the salary of riders, which is higher compared to other delivery platforms.

However, these promotional activities and preferential measures have not brought significant results. Although KeeTa received a large number of orders on its first day of launch, its market share did not show significant growth in the following month. With a market share of only 20%, we can't beat the 'local snake'! This may be due to the low frequency and willingness of Hong Kong citizens to sell and use, as well as the intense market competition.

The Prospects of Meituan in the Hong Kong Market

The potential of the Hong Kong takeout market is still enormous, but the challenges are also very severe. To succeed in the Hong Kong market, Meituan KeeTa needs to address issues such as high delivery fees, high prices, slow delivery, and poor user experience.

At the same time, breaking the single quantity limit and forming a scale effect. However, the size of the Hong Kong market is limited, and users' consumption habits are difficult to change in the short term, so the path for Meituan to enter the Hong Kong takeout market is very difficult.

epilogue

Although Meituan has some problems in the Hong Kong delivery market, the potential of the delivery market is still enormous.

According to data, the size of Hong Kong's food and beverage delivery market is expected to reach HKD 7.4 billion by 2025, but the penetration rate is only about 3%. Compared to this, in mainland China, the penetration rate of the catering delivery market is close to 30%, and it is expected to continue to grow in the coming years.

Therefore, as one of the world's largest delivery platforms, Meituan still has the opportunity to succeed in the Hong Kong market. However, Meituan needs to adjust its strategy and business model based on the characteristics and needs of the Hong Kong market, provide better user experience and higher quality services, in order to establish a foothold and achieve sustainable development in the Hong Kong market!

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