Chinese on-demand delivery giant Meituan reported a 22.1% revenue jump to RMB 76.47 billion in the last quarter, with revenue from core local commerce, including food delivery and Meituan Instashopping, rising 24.5% to RMB 57.69 billion. During the three-month period, food delivery orders reached a daily peak of 78 million in August, the company’s highest on record and double that of three years ago. However, Meituan executives said they expect growth in order volume to slow in the fourth quarter due to the current macro environment as well as warmer-than-usual weather this winter, but added that the company will increase its marketing efforts to try and stimulate demand. The company narrowed operating loss in its new initiatives by 24.5% and CEO Wang Xing told investors on a related earnings call that the segment has a “clear path” to profitability. Wang said Meituan is a “rational” company, and will adjust its strategy if they realize any of the new initiatives have a limited chance to make significant profit in the long run. [Meituan]
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