Meituan’s third-quarter sales rise as antitrust clouds gather over China’s internet giants

Meituan reported a 28.8 per cent increase in third-quarter revenue on the back of its main food delivery operations

The Beijing-based company said food delivery typically has its peak season in terms of order volume during the summer

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Published: 5:42pm, 30 Nov 2020Updated: 10:56pm, 30 Nov 2020

Meituan, operator of China’s largest e-commerce platform for services, expects “reinforced regulation” to promote more innovation and balance of interests in China’s internet industry, following Beijing’s release of a draft antitrust guideline in November.

“We think the new antitrust consultation paper is supportive of the healthy development of the internet ... and helps promote fair competition within the industry,” said Wang Xing, co-founder and chief executive of Meituan, in a conference call with analysts after the market closed on Monday. “As internet platforms become bigger and more important to the economy, regulatory frameworks will also evolve.”

His comments come after Meituan reported third-quarter financial results that beat market estimates, as the domestic economy continued to recover amid increased consumer spending and the steady growth of the company’s food delivery business across the country.

“We are currently in constructive dialogue with the regulatory authority to better understand the spirit of the consultation paper,” Wang said.

Beijing-based Meituan reported a 28.8 per cent surge in revenue to 35.4 billion yuan (US$5.4 billion) in the quarter ended September 30, up from 27.5 billion yuan in the same period last year, after the market closed on Monday. That was ahead of the market consensus of 34 billion yuan from a survey of analysts’ estimates compiled by Bloomberg.

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