Meituan, the prominent O2O (Online-to-Offline) platform in China, reported a 22.6% increase in revenue for the fourth quarter of 2023 compared to the same period the previous year, reaching 73.696 billion yuan. The net profit stood at 2.217 billion yuan, a significant turnaround from the previous year’s losses.
The consistent profitability across four consecutive quarters in 2023 boosted Meituan’s overall annual profit to 13.857 billion yuan. The company’s performance was divided into two key business segments: Core local commerce and New Initiatives.
In the Core local commerce segment, revenue grew by 26.8% to 55.131 billion yuan, driven by the success of Meituan Instashopping, a rapid delivery service, and the expansion of Meituan’s delivery service with Pin Hao Fan, offering group orders for nearby restaurants.
New Initiatives saw a growth of 11.5% to 18.565 billion yuan. Meituan Select, a group purchasing e-commerce service, experienced slower growth due to intense competition. Meituan Grocery was rebranded as Xiaoxiang Supermarket to establish a stronger online supermarket presence.
Source: Meituan (pdf)
TLDR: Meituan’s O2O platform in China reported a significant revenue increase and returned to profitability in the fourth quarter of 2023. The company’s operations were divided into Core local commerce and New Initiatives segments, with notable growth in both areas.
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