Meituan profit doubles as AI and global bets pay off in Q1 2025
Local services titan expands margins, doubles profit, and makes global AI delivery play. Instashopping and Saudi delivery push Meituan beyond local services
Profit rose 87% YoY to RMB 10.1B amid wider margin gains across both core and emerging businesses.
New initiatives revenue grew 19.2% YoY, driven by overseas delivery success in Saudi Arabia and retail.
R&D hit RMB 5.8B, up 15% YoY, with intensified investments in AI.
Adjusted EBITDA reached RMB 12.3B, up 52.4% YoY, reflecting operating efficiency.
Meituan Instashopping and Keeta expanded rapidly, with tech enhancements across delivery and retail.
Once a group-buying app, Meituan now dominates China’s local services space—food delivery, in-store dining, and on-demand retail. With domestic tech peers retrenching, Meituan has plowed forward into AI, grocery, and international expansion.
After a rocky 2022 and strong 2023 recovery, the company’s Q1 2025 performance offers insight into the health of China’s consumer tech ecosystem.
Revenue and profit rebound
Meituan’s revenue rose 18.1% year over year to RMB 86.6 billion ($12.2 billion), while profit for the period jumped 87.3% to RMB 10.1 billion ($1.42 billion). Operating margin expanded to 12.2%, up from 7.1% a year ago, and adjusted net profit rose 46.2% to RMB 10.95 billion.
Core local commerce brought in RMB 64.3 billion, up 17.8%, with operating margin improving to 21% from 17.8%. Meituan credited Pin Hao Fan and Shen Qiang Shou with improving user stickiness and frequency, particularly among value-conscious diners.
Product innovation and platform upgrades
Tech-led offerings were key to the quarter’s growth. Meituan ramped up the deployment of Branded Satellite Stores, enabling chain restaurants to scale across regions with lighter footprints. Offline merchants also received tailored tools to boost conversion amid digitalization.
Meituan launched the Bright Kitchen initiative, enhancing food safety via kitchen transparency. It pledged RMB 100B over three years to support industry-wide upgrades, from hardware subsidies to digital tooling.
On-demand retail and logistics tech
Meituan Instashopping surged, fueled by Valentine’s Day demand and higher orders for beauty, 3C, and snacks. The official launch of the Instashopping brand in April, including a homepage shortcut and 30-minute delivery promise, positions it directly against JD.com and Alibaba’s Freshippo.
Its warehousing network, Meituan InstaMart, grew both in count and contribution, especially in lower-tier cities. Logistics algorithms and inventory systems underpinned rapid SKU expansion.