Chinese food delivery giant Meituan beats quarterly revenue estimates
Technology
Chinese food delivery giant Meituan beats quarterly revenue estimates
SHANGHAI (Reuters) - China's largest food delivery firm Meituan posted a bigger-than-expected 22.4% rise in third-quarter revenue on Friday, defying sluggish Chinese consumption.
Meituan, which has an app that provides services as varied as bike-sharing, ticket-booking, and maps, reported revenue in the three months to Sept. 30 at 93.58 billion yuan ($12.94 billion), up from 76.47 billion yuan in the same period a year earlier.
Its net profit for the quarter hit 12.86 billion yuan, increasing from a profit of 3.59 billion yuan a year earlier.
Penny-pinching Chinese consumers have led to low-cost and discounted products becoming the focus for shoppers and platforms, benefitting Meituan, which delivers the goods for a small fee.
Meituan's revenue from core local commerce, which includes food delivery and non-food delivery service Meituan Instashopping, rose 20.2% to 69.37 billion yuan.
Sales from new initiatives grew 28.9% to 24.2 billion yuan.
Last year, Meituan announced it was buying Light Year, an artificial intelligence (AI) startup established by Meituan co-founder Wang Huiwen, for $281 million as major tech firms in China increased their bets on AI.
Meituan is China's biggest delivery platform, with a 69% share of the 1 trillion yuan market, according to data from researcher ChinaIRN.
