Text/Block Technology
Editor/Block Tech
preface
Can't beat the "ground snake"? Meituan's situation in Hong Kong is worrying! The market share is only 20%.
KeeTa challenges in the Hong Kong market
As Meituan launched its food delivery platform KeeTa in Hong Kong and began trial operations, there were expectations for its market performance. However, the situation in the Hong Kong takeaway market made Meituan feel helpless.
According to reports, KeeTa only won 20% of the market share in its region within one month of landing in Hong Kong, which is still far behind the mainstream market platforms Foodpanda and Deliveroo. This reflects the very strong competitive situation in the Hong Kong market.
However, the overall penetration rate of Hong Kong's food delivery market is low. According to statistics, the compound annual growth rate of online takeaway orders in Hong Kong is 26.9%, and the penetration rate of the takeaway market is only about 4% to 5%, accounting for less than 0.5% of the entire catering market. In contrast, the potential of Hong Kong's food delivery market remains huge.
Since Hong Kong residents are very convenient to eat out, they are not as frequent and willing to use takeaway as Chinese mainland. In addition, delivery fees in Hong Kong are higher, prices are more expensive, and delivery speeds are slower, resulting in a poor user experience. These problems have become pain points in Hong Kong's takeaway market and need to be solved.
KeeTa faces two food delivery platforms, Foodpanda and Deliveroo, which share 90% of the Hong Kong market, forming a clear "monopoly" pattern.
In addition, some small food delivery platforms that have previously entered the Hong Kong market have also faced difficulties, including UberEats. These platforms have all withdrawn from the Hong Kong market due to low market share and business development that has not met expectations.
Meituan's strategy in the Hong Kong market
At the beginning of its entry into the Hong Kong market, Meituan adopted a similar "burn money for users" strategy as it did in Chinese mainland, launching a variety of promotional activities to attract customers and riders. Meituan has provided a number of coupons for newly registered users, including full discount coupons and shipping discount coupons. In addition, Meituan has also increased riders' salaries, which are higher compared to other takeaway platforms.
However, these promotions and incentives have not had a noticeable effect. Although KeeTa received a large number of orders on its first day of launch, it did not achieve significant market share growth in the following month or so. The market share is only 20%, and it can't beat the "ground snake"! This may be due to the low frequency and willingness of Hong Kong citizens to use takeaway, and the market competition is also fierce.
Meituan's prospects in the Hong Kong market
The potential of Hong Kong's food delivery market is still huge, but the challenges are also daunting. If Meituan KeeTa wants to succeed in the Hong Kong market, it needs to solve the problems of high delivery fees, high prices, slow delivery, and poor user experience.
At the same time, it breaks the limit of single volume and forms a scale effect. However, the Hong Kong market is limited and users' consumption habits are difficult to change in the short term, so Meituan's road to enter the Hong Kong food delivery market is very difficult.
epilogue
Although Meituan has some problems in the Hong Kong food delivery market, the potential of the food delivery market is still huge.
According to data, the size of Hong Kong's food and beverage delivery market is expected to reach HK$7.4 billion in 2025, but the penetration rate is only about 3%. In contrast, the penetration rate of the food delivery market in Chinese mainland is close to 30%, and it is expected to continue to grow in the next few years.
Therefore, Meituan, as one of the world's largest food delivery platforms, still has a chance to succeed in the Hong Kong market. However, Meituan needs to adjust its strategy and business model according to the characteristics and needs of the Hong Kong market, provide better user experience and higher quality services, and gain a foothold in the Hong Kong market and achieve sustainable development!
As mentioned in the above article, for this "Meituan began to promote and operate in the Hong Kong takeaway market, but the situation is worrying!" The market share is only 20%", what do you think about this?
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