MEITUAN DIANPING ’S

PATH TOWARDS
PROFITABILITY
A CASE STUDY
HANS TUNG, Managing Partner of GGV Capital
A SNAPSHOT OF MEITUAN DIANPING
CHINA’S “SUPER APP” IN CONTEXT

$56 Bn $3.17 Bn China’s 3rd most

valuable tech company
In market cap In revenue

equals Uber 12X Yelp replaced Baidu

as the third biggest tech
as of Q2, 2019 for of Q2, 2019
company in China

Source:
http://meituan.todayir.com/attachment/2019082317480126273592448_en.pdf;https://www.chinainternetwatch.com/29703/meituan-q2-2019/

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A SNAPSHOT OF MEITUAN DIANPING

422.6 million 25.5 times average 7.50 dollars 5.9 million

annual transacting no. of transactions per average revenue per active merchants,
users annual transacting users user per quarter 16.2% yoy growth

TOP 5 in app transaction category

Food Delivery Restaurants Hotel booking Entertainment Beauty Services

Source:
http://meituan.todayir.com/attachment/2019082317480126273592448_en.pdf; https://www.chinainternetwatch.com/29703/meituan-q2-2019/

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 Yelp Meituan Dianping

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 Movie and
show tickets Bike Sharing
Comparable to Fandango Comparable to Lime*.
Meituan offers pedal bikes only as of Aug. 2019.

Food Delivery
Restaurants Comparable to GrubHub
Review
Hotel
Comparable to Yelp
booking
Comparable to booking.com
Ride Hailing
Train/Airplane
Comparable to Uber tickets
Comparable to Kayak

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 M E I T U A N ’ S E VO L U T I O N OV E R T I M E

Meituan started to
provide software
Movie and show tickets
services to merchants
Added in Meituan

Food delivery and hotel

Meituan was Meituan and Dianping merged
reservation was added Ride hailing added
launched in 2010
into Meituan in 2013 to Meituan
as a Groupon
business

2012 2013 2014 2015 2016 2017 2018

Yelp went public on Yelp bought Eat24 Yelp sold Eat24 to GrubHub
NYSE in Mar.2, 2012 Uber launched Uber Eats

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S E G M E N T B R E A K D O W N F O R R E V E N U E A N D P RO F I T

Revenue Profit

Source:
http://meituan.todayir.com/attachment/2019082317480126273592448_en.pdf

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REVENUE BY TYPE

Source:
http://meituan.todayir.com/attachment/2019082317480126273592448_en.pdf
https://www.yelp-ir.com/news-releases/news-release-details/2019/Yelp-Reports-Fourth-Quarter-and-Full-Year-2018-Financial-Results/default.aspx

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B E G I N N I N G O F V I R T U O U S C I RC L E

27%
yoy growth in advertising revenue
2019 Q2
Advertising Revenue 16.2%
yoy increase in no. of active merchants
Food Delivery
3% yoy growth rate in advertising
revenue
In-store, hotel and travel
50% yoy growth in the no. of
active marketing merchants
Source:
http://meituan.todayir.com/attachment/2019082317480126273592448_en.pdf
https://www.yelp-ir.com/news-releases/news-release-details/2019/Yelp-Reports-Fourth-Quarter-and-Full-Year-2018-Financial-Results/default.aspx

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MEITUAN OFFERS MERCHANTS MORE CHANNELS TO
R E AC H C O N S U M E R S

Consumer
Merchant
Before $
Advertising

Groupon and
discounts Sa
$ ves
mo
ne Consumer
Merchant y

$ Becomes informed
After Advertising
and reviews
$ er
ide
fre
ts
Ge
Pay for users’
rides

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S U P E R A P P A P P ROAC H I M P ROV E S U S E R R E T E N T I O N

Source: Trustdata Report on China’s Food Delivery Business

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S U P E R A P P A P P ROAC H I M P ROV E S U S E R S T I C K I N E S S

Source: Trustdata Report on China’s Food Delivery Business

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 F O O D D E L I V E RY R E V E N U E S I Z E

Billions (USD)

3.5

2.5

1.5

0.5

0
Meituan Dianping Uber Grubhub Yelp
Total Revenue Revenue from Food Delivery (including advertising)

Source: Financial statements from the companies' website

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S T E A DY R I S E I N M A R K E T S H A R E

Source: Trustdata Report on China’s Food Delivery Business

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R I S I N G S U P E R A P P S I N E M E RG I N G M A R K E T S

1st Decacorn On Demand Delivery On demand Delivery

in SEA Unicorn in India Unicorn in LATAM

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SCMP: https://www.scmp.com/tech/article/2157177/how-grabs-ceo-steered-it-garage-malaysia-southeast-asias-most-valuable-tech

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For more on Meituan-Dianping, listen to our interview with
Tao Zhang, founder of Dianping, on the 996 podcast

PODCAST
SEARCH “996” IN ANY
PODCAST APP

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