On March 21, 2025, Meituan released its 2024 annual performance report. The data indicates that the company’s annual revenue reached 337.592 billion yuan (approximately $46.6 billion), a year-on-year increase of 22.0%; operating profit was 36.845 billion yuan (approximately $5.1 billion), a significant year-on-year growth of 174.6%. Despite these impressive financial figures, the market’s reaction was mixed, with stock prices experiencing fluctuations post-announcement, reflecting investors’ complex expectations regarding Meituan’s future growth potential. This annual report summarizes Meituan’s operational achievements over the past year and reveals the deep logic behind its strategic transformation in the digital economy era and its future plans.
1. Meituan’s Steady Progress in 2024: Highlighting Ecosystem Synergy
On March 21, 2025, Meituan released its 2024 annual financial report, showcasing significant growth across key financial metrics. Annual revenue reached 337.592 billion yuan (approximately $46.6 billion), a 22% year-on-year increase; operating profit was 36.845 billion yuan (approximately $5.1 billion), up 174.6%; and net profit stood at 35.808 billion yuan (approximately $4.9 billion), a 158.4% increase.
The sustained expansion of user and merchant ecosystems has been fundamental to this performance. By the end of 2024, Meituan’s annual transacting users surpassed 770 million, with annual active merchants increasing to 14.5 million. The peak daily orders for instant delivery reached 98 million. As of the end of 2024, the flash sales business had partnered with over 5,600 large chain retailers, 410,000 local small businesses, and more than 570 brands, significantly enhancing instant retail demand in lower-tier cities. The in-store dining and travel business saw a 65% year-on-year increase in order volume, with the membership system “Shen Member” covering 70% of merchants, further strengthening user engagement and merchant operational efficiency.
Despite these strong results, concerns remain about Meituan’s future growth drivers. Although losses in new business segments have narrowed, they still require ongoing investment. Competitors like Douyin’s life services are rapidly gaining market share, and the high costs associated with international expansion pose challenges to long-term profitability.
2. Strategic Direction: A Three-Pronged Approach of Retail, Internationalization, and AI Technology
In an internal communication meeting in March 2025, Meituan CEO Wang Xing identified “retail, internationalization, and AI technology” as the core strategic directions for the next decade. This strategy reflects a deepening of the local commerce ecosystem and a proactive response to technological advancements and globalization trends.
Retail: Transitioning from “Transaction Platform” to “Life Platform”
Grocery retail is a crucial component of Meituan’s new strategy, focusing on redefining user relationships and transforming Meituan from a mere food delivery platform into an integral part of users’ daily lives. In 2024, Meituan’s flash sales business continued its robust growth, becoming a significant driver for home delivery services. Order penetration in lower-tier cities increased, and the inclusion of major brands further fueled growth. This indicates that Meituan’s efforts in the grocery retail sector are yielding results, with users relying on the platform not only for food delivery but also for instant delivery of daily necessities.
In the long term, Meituan’s development in grocery retail holds immense potential. As consumers increasingly seek quality and convenience, the demand for instant delivery will continue to rise. By optimizing supply chains and enhancing delivery efficiency, Meituan can better meet users’ immediate needs for fresh produce and daily goods. Additionally, the grocery retail business enables Meituan to further tap into users’ consumption potential and increase user loyalty. When users become accustomed to fulfilling various consumption needs on the Meituan platform, its position in the local life services sector will be further solidified.
UBS forecasts that Meituan’s flash sales orders will grow by 35% in 2025, with the market size expected to exceed one trillion yuan (approximately $138 billion). Consumption upgrades in lower-tier cities and the “brand satellite store” model (e.g., Haidilao’s delivery-only kitchens) will further unlock potential. This model enhances supply chain efficiency by closely integrating dining brands with instant delivery networks, achieving “brand meals delivered in 30 minutes.” Furthermore, Meituan plans to reduce delivery costs through “self-pickup” services, integrating online ordering with offline fulfillment to stimulate nearby consumption scenarios. This service has undergone pilot testing in select cities, aiming to improve conversion efficiency for merchants within a one-kilometer radius.
Technologically, the large-scale application of drones and autonomous delivery vehicles will accelerate the penetration of instant retail. In 2024, Meituan’s drones completed 450,000 deliveries, and autonomous delivery vehicles fulfilled 4.91 million orders, obtaining regular operation qualifications in Dubai. In the future, these technologies are expected to reduce delivery costs by over 30%, facilitating the expansion of instant retail from first- and second-tier cities to county-level markets.
However, competition in the grocery retail market is intensifying. Other e-commerce platforms and offline retailers are actively expanding instant delivery services, seeking to capture market share. Meituan must continually innovate and optimize its services to maintain a competitive edge, such as collaborating with more quality suppliers to offer cost-effective products and utilizing big data and AI technologies for precise marketing and inventory management to enhance operational efficiency.
Internationalization: Opportunities and Challenges in Expanding Overseas Markets
Internationalization is another critical strategic direction for Meituan’s growth. In 2024, Meituan’s overseas business made significant strides, particularly in the Hong Kong and Middle Eastern markets. In Hong Kong, Meituan’s food delivery service, Keeta, rapidly rose to prominence through precise market positioning and effective subsidy strategies, leading to the withdrawal of competitor Deliveroo from the market.
[Disclaimer]: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.