NewCet reported that Keeta, the international business of Meituan, has become the third largest food delivery platform in Saudi Arabia just four months after its launch. With its aggressive price subsidy strategy, the Chinese giant is squeezing out small and medium-sized players, challenging the dominance of local leaders HungerStation and Jahez, and plans to use the Middle East as a springboard to enter the global market .
According to the latest report from Redseer, a Bangalore-based consulting firm, Keeta has taken up 10% of the Saudi market share since entering the country in October last year, surpassing more than a dozen small and medium-sized platforms. Research director Sandeep Ganediwalla pointed out: "Keeta is expanding rapidly with a price-destructive strategy. Currently, the competitive pressure is mainly concentrated on small and medium-sized enterprises, and the impact on large enterprises is not too great."
An unnamed Keeta Riyadh employee confirmed to NewCet that the company's internal assessment showed that it was firmly in third place in the market, and its goal was to "reach the top as soon as possible." To attract users, Keeta launched promotions such as a 100 Saudi Riyal (about 194 yuan) coupon for registration, 50% off for the first order, and permanent free shipping. Redseer estimates that these subsidies can reduce meal expenses by about 20%.
Data from market monitoring agency Sensor Tower shows that as of January this year, Keeta has been downloaded 3.6 million times in the Saudi Arabian Apple App Store , ranking first on the free list.
Keeta's lightning tactics have proven successful in the Hong Kong market: one year after entering the market, Keeta's order volume has surpassed Foodpanda and Deliveroo, and its market share reached 55.2% as of January 2024. An employee of a competitor admitted: "We can't compete at all. Their market disruption is too strong."
But some analysts say Keeta’s price-cutting growth strategy cannot be sustained in the long term, nor can it remain competitive enough to compete with international food delivery giants.
Keeta will face challenges as it scales, including profitability, as it continues to expand in international markets outside the Middle East and North Africa, said Geng Sun, an assistant professor at the University of Texas Rio Grande Valley who studies food delivery platforms.
Faced with these challenges, Keeta’s staff in Riyadh said the company realized that its “growth first, profitability later” approach could not be a long-term global strategy. “You can’t keep offering the same discounts endlessly,” they said.