Meituan’s Q4 signals a deeper pivot: from food delivery to infrastructure

China’s super app closes 2024 with a profit surge and enters 2025 betting big on AI, ultra-local commerce, and courier care—with a billion-yuan support package to match.

Key insights

• Q4 2024 revenue rose 20.1% YoY to RMB88.5 billion, with growth in both core local commerce and new initiatives.

• Meituan doubled down on platform-driven innovations like Pin Hao Fan, Branded Satellite Stores, and InstaMart—reshaping both merchant economics and consumer behavior.

• A RMB1 billion support program for merchants and expanded welfare for couriers highlights Meituan’s ambition to scale responsibly.

Steady financials, strategic clarity

Meituan wrapped Q4 2024 with RMB88.5 billion in revenue, up 20.1% from the same quarter in 2023.

While operating profit dipped slightly to RMB6.7 billion from RMB2.7 billion YoY due to increased investment, the full-year numbers tell a different story: total revenue for 2024 reached RMB337.6 billion, a 22% YoY jump.

Both core local commerce and new initiatives drove the topline. Core local commerce (food delivery, in-store, and hotel & travel services) remained the anchor, while Meituan’s bets on on-demand retail and new supply chains are starting to deliver.

Redefining on-demand: not just fast, but foundational

Meituan’s Q4 narrative isn’t about speed—it’s about structure.

The company repositioned food delivery and on-demand services as pillars of the modern retail and catering industries. These aren’t just transactions—they're infrastructure upgrades.

Major drivers this quarter:

• Pin Hao Fan: Affordable bundled meals boosted restaurant sales and unlocked new user demand, particularly among budget-conscious consumers.

• Branded Satellite Stores: Let branded restaurants extend reach through delivery-only kitchens—cost-efficient for merchants, better value for consumers.

• Shen Qiang Shou: Improved product curation and selection brought premium but affordable retail items to the forefront of the on-demand model.

• Meituan InstaMart: Saw remarkable growth, especially in lower-tier markets. Traditional offline retailers embraced the model to digitize without building tech from scratch.

Together, these platforms expand Meituan’s reach from a delivery app to a commerce enabler. They're not just optimizing for clicks—they're engineering behavior shifts.

Merchants and couriers: the real growth levers

The platform’s long-term health depends on who powers it—and Meituan’s moves here are noteworthy.

For merchants:

• Rolled out a RMB1 billion merchant support program in Q4.

• Focused on cash subsidies, promotional upgrades, food safety governance, and protection against fake reviews.

• Streamlined onboarding and operations, especially for small businesses in lower-tier cities.

For couriers:

• RMB1.4 billion in occupational injury insurance disbursed since July 2022 across 7 pilot regions.

• Q4 saw new welfare features:

  • Anti-fatigue mechanisms in routing and dispatch systems

  • Care accommodations for hearing-impaired couriers

  • Aid for families facing medical or education hardship

The company also revealed a pilot plan for courier social security, launching in select cities in Q2 2025, guided by national policy.

In-store and local services: a surprise breakout

If 2024 was about digital strength, in-store services proved physical presence still matters.

• Order volume grew over 65% YoY in the in-store segment.

• Both Annual Transacting Users and Active Merchants hit record highs.

• Key enablers:

  • Special Deals and live-streamed campaigns drove targeted, high-conversion promotions.

  • Integration of business lines post-restructuring improved platform support and traffic allocation.

  • Upgraded Shen Hui Yuan loyalty program linked delivery traffic with offline merchants, boosting transaction volume.

It wasn’t just growth—it was systemic improvement in how local businesses engage with digital commerce.

Hotel and travel: cross-category plays win

As travel returned with force, Meituan didn’t just sell hotel rooms—it bundled entire experiences.

• Strengthened its position in low-star and lower-tier hotels, using platform tools to improve room quality and digital operations.

• Hotel + X packages integrated transport, food, and entertainment—catering to broader travel habits.

• High-star hotels joined Shen Hui Yuan, with co-branded marketing and shared loyalty benefits increasing platform stickiness.

This approach paid off in both volume and retention—turning short-stay users into cross-category customers.

Next-gen platform play: AI as infrastructure

Meituan isn’t just optimizing UX—it’s rebuilding its backbone.

CEO Wang Xing confirmed the company is investing in LLMs and AI-native infrastructure, especially across:

• Smart dispatch and route planning

• Dynamic pricing and real-time personalization

• Merchant-side operational tools

• Cross-category recommendation engines

It’s not hype—this is how Meituan plans to scale, without scaling headcount or cost. With China’s AI race heating up, this positions Meituan to defend its moat not just with network effects, but with intelligence.