Wang Xing personally leads expansion into Saudi Arabia, Meituan's replication and challenges in the Middle East

Original @新熵 Author 丨 Yuki Editor 丨蕨影

Spotting a bright yellow vehicle speeding through the streets of Riyadh, Li Qun (pseudonym) excitedly recorded a video inside the car: "Look, this is Meituan's overseas brand, called Keeta! This is Chinese speed!"

At this point, it had only been a week since Meituan officially launched in Riyadh, yet Keeta's delivery riders were already a common sight across the city. In the core commercial districts, Keeta's massive billboards quietly signaled Meituan's ambitions for global expansion.

Li Qun's words carried a double meaning—"speed" referred not only to delivery efficiency (with Keeta promising delivery times of 25-30 minutes in a region where the average is close to an hour) but also to Keeta's rapid expansion in Saudi Arabia. On September 9, Keeta launched in the small city of Al Kharj (population: 400,000), and after just a one-month pilot, it officially entered Riyadh on October 9.

Start with guerrilla tactics, then move to positional warfare.

Small-scale pilots followed by decisive investment—this is Meituan's proven strategic playbook, successfully executed in Hong Kong over the past year. In May 2023, Keeta launched in Hong Kong's Mong Kok and Tai Kok Tsui districts, covering all of Kowloon in under three months, crossing the harbor in September, and achieving full coverage of Hong Kong by October. This blitzkrieg took less than five months in total.

According to third-party platform Measurable AI, by March 2024, Keeta accounted for approximately 44% of Hong Kong's food delivery orders, surpassing foodpanda's 35% to become the market leader.

Keeta's success in Hong Kong boosted Meituan's morale for overseas expansion, with optimism extending to the Middle Eastern front. In a leaked video, founder Wang Xing appeared in Riyadh, delivering a speech in English: "We will become an excellent brand here, helping everyone in Riyadh eat better."

However, while Hong Kong served as Meituan's "whetstone" for global expansion—sharing cultural and dietary similarities with mainland China—the Middle East presents far more complex challenges. Religious beliefs, consumer habits, delivery costs, and even payment methods differ drastically. Moreover, the region is already a fiercely competitive market, no less intense than Hong Kong.

Will Keeta replicate its Hong Kong success or struggle to adapt?

Replicating the Hong Kong Playbook

How difficult is it to deliver food in the vast desert? Contrary to popular belief, Saudi Arabia's food delivery market is far from barren—it's a "red ocean." From the local brand Foodboy (founded in 2009) to today, Saudi Arabia's delivery ecosystem is well-developed, with foreign and local players competing fiercely. Meituan's old rival, Delivery Hero's Hunger Station, and the local brand Jahez hold a combined 70% market share.

Another local favorite, MR.SOOL, boasts over 18 million registered users as of 2023. Local Chinese residents note that beyond food delivery, the platform offers same-day delivery for almost anything—including moving services and gas cylinder deliveries. Meituan's "everything delivered" concept seems to have been preempted.

There's also Germany's Deliveroo, Noonfood (under Middle Eastern e-commerce giant Noon), and Wukong Delivery (a niche service for overseas Chinese launched in 2024)...

Despite this crowded field, Keeta's entry has stirred the waters. According to 36Kr, Delivery Hero's stock price dropped 9% upon news of Meituan's Saudi expansion.

Past success is the best endorsement, and Hong Kong's playbook is being replicated seamlessly.

On the user side, the tried-and-tested "burn cash for market share" strategy is in full swing. Opening Keeta's Saudi app reveals a 100 SAR (≈189 RMB) voucher front and center. Even more enticing is the waived delivery fee—averaging around 15 SAR (≈30 RMB) in Saudi Arabia.

Beyond chains like KFC and Starbucks, most restaurants on Keeta offer limited-time discounts of 10%-20%. Catering to Saudis' habit of ordering for the whole family, Keeta has also introduced discounted meal bundles.

Vouchers, free delivery, and meal deals—this strategy had more localized names in Hong Kong: "1 Billion Incentives" and "Solo Diners' Canteen." The latter reportedly slashed prices below dine-in rates for some meals.

Short-term demand, long-term supply. Keeta's Riyadh rollout also learned from Hong Kong's early missteps. When Keeta launched in Hong Kong last May, its offerings were initially limited to fast-food chains like McDonald's and Yoshinoya, with few local brands like Maxim's.

In Saudi Arabia, this groundwork started earlier. By June, Riyadh merchants were already in talks with Meituan. On Xiaohongshu, a local Chinese restaurant owner proudly posted about becoming the first signed merchant on June 12.

Keeta's current merchant lineup spans cuisines—not just Chinese and Middle Eastern but also Thai, Indian, and Japanese. For example, searching "shawarma" yields over a hundred options in Riyadh.

Talent recruitment began even earlier. In April, Meituan opened multiple job postings in Riyadh, quickly assembling a multilingual team fluent in Arabic—another tactic honed in Hong Kong.

"New local hires handle sales and outreach in Arabic. Cooperation has been smooth," a Meituan employee told National Business Daily, adding that their performance overturned stereotypes: "They’re not as laid-back as we initially assumed."

Challenges Behind the Subsidies

Meituan's Saudi exploration began long before Hong Kong, making this its true first step beyond China—and a far harder challenge.

Public records show that as early as October 2022, Meituan's head of overseas investment, Zhu Wenqian, visited the Middle East multiple times. In May 2023, Wang Xing, Wang Puzhong, and other top executives joined her in Saudi Arabia, meeting several royal family members.

To replicate Hong Kong's speed, heavy subsidies are just the entry ticket—localization is the real test.

Foremost is the fulfillment hurdle.

Saudi Arabia's vast desert terrain and concentrated urban populations mean most deliveries rely on cars and motorcycles—unlike China's e-bikes and foot couriers. Social media videos show rows of Keeta-branded cars, signaling Meituan's adaptation. Reports also indicate drone delivery research.

But the real challenge isn't vehicles—it's algorithms. Sandstorms, artificial rainfall (ironically worsening drainage), and Ramadan (when daytime fasting shifts demand to nighttime) could cripple delivery systems.

Deeper still, fulfillment issues compound payment habits. Cash-on-delivery (COD) remains dominant (50%-60% of transactions), ruling out contactless drop-offs. Saudi riders also rarely batch orders—a system limitation, per insiders.

All this inflates already-high labor costs. Riyadh's 43.5°C summer days and zero July rainfall demand extreme endurance. While Meituan uses third-party riders as in China, Saudi agencies charge extra fees—likely pushing costs above Hong Kong's.

Meituan's playbook starts with subsidies, free delivery, and merchant onboarding—but its edge lies in algorithms maximizing rider efficiency. In Hong Kong, after securing dominance, Keeta reportedly tightened delivery windows and cut per-order pay from 50 HKD to 30 HKD, shifting toward profitability.

But Saudi Arabia's unique environment may disrupt this core logic.

The Decisive Battle for Globalization

Despite the hurdles, Saudi Arabia is undeniably Meituan's top strategic priority. In February, its largest-ever reorganization placed drones and overseas operations directly under Wang Xing.

As investor Zhu Xiaohu noted, globalization defines a company's ceiling. With domestic growth slowing amid rivals' encroachment, overseas success could reignite investor confidence.

During Q2 earnings, Wang Xing called Meituan's global push "very early-stage," but Saudi Arabia—scouted since 2016—emerged as the ideal launchpad. The market combines high penetration (44.2% in 2024, close to China's 54.5%) with 20% annual growth (versus <15% in North America/Asia).

Saudi users also spend more (Jahez's average order: $16 vs. Meituan's $7) and order frequently (50% of Jahez orders come from users ordering 10+ times monthly).

▲ Image/Jahez screenshot

Beyond demographics, Saudi's business climate—young population (median age: 32), tax incentives (30-year corporate tax exemptions for foreign HQs), and digital payments (e-payment share surged to 70% in 2023)—makes it Meituan's bridgehead for the Middle East and beyond.

Since 2016, Meituan has explored overseas markets via hotel bookings. In 2017, Wang Xing outlined a vision of "reaching high, digging deep, going global." Now, with its core business finally stepping out, the road ahead looks longer and tougher than imagined.

In Riyadh's offices, Meituan's motto—"Long-term, patient"—hangs prominently. But beyond replicating Hong Kong's speed, Meituan's true test is whether it can walk steadily and far.