BEIJING – "Kuaidi (Delivery)!" Just past 11 PM, a microwave ordered via the Meituan app 30 minutes earlier was delivered. A South Korean company representative living in Wangjing, Beijing, said, "I was surprised when I urgently needed a microwave a few days ago, pressed the order button, and it was delivered so quickly."
Meituan is a leader in China's rapidly growing delivery platform market and a familiar brand to South Koreans living in China. It's similar to South Korea's "Baedal Minjok" (Delivery Nation), but its "delivery range" is much broader. Starting with food delivery like Baemin, it now delivers stationery, toys, various household goods, and even home appliances. Typically, orders over 30 yuan (approximately 5,950 KRW) can be delivered to your door without a separate delivery fee. It operates on a virtually 24-hour system. A Meituan rider (delivery driver) in Beijing said, "Orders come in for everything from watch batteries to women's underwear, regardless of the time, and we deliver them immediately. Nighttime is even busier."
Meituan's growth is rapid. According to the securities industry, Meituan's revenue last year is estimated at 350 billion yuan. Compared to 179.1 billion yuan in 2021, its size has nearly doubled in three years. Profits are also increasing. While it recorded a net loss of 23.5 billion yuan in 2021, it turned a profit for the first time in 2023 with 13.8 billion yuan, and its net profit last year is estimated to have reached 20 billion yuan. Meituan is benefiting the most from the rapidly growing delivery market.
According to the Chinese economic media outlet Caixin, the "bullet delivery" market, where products are delivered within an hour in China, reached 780 billion yuan last year. The market size grew by 20% compared to the previous year and is expected to expand to 1.17 trillion yuan by 2026. Analysis suggests that it has entered a profit-generating phase after investment has been largely completed. Meituan's stock price, listed on the Hong Kong Stock Exchange, has also risen by about 14% this year.
Meituan provides bullet delivery services in about 3,000 cities across China, operating a dedicated warehouse network. Meituan's warehouse network consists of about 30,000 warehouses and plans to increase it to 100,000 by 2027. It is also focusing on partnerships with global retailers, having formed partnerships with Muji and Lawson.
Meituan expanded its delivery services beyond food in 2018, hiring a large number of riders. As of last year, the number of Meituan riders was close to 7.5 million, nearly double the 3.98 million in 2019. Riders typically use motorcycles for delivery.
Meituan has also been increasing its investment in drone delivery in recent years. Last year, it started drone delivery in the Lianhuashan Park area of Shenzhen. Tourists can receive drinks and fruits ordered in just 9 minutes. The company plans to expand drone delivery services to major regions in China in the long term, aiming to deliver 20% of all orders by drone by 2029.
As the bullet delivery market in China grows, competition among companies is intensifying. Alibaba has entered the bullet delivery market through its food delivery app "Ele.me." China's e-commerce giant JD.com also started food delivery services in February.
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