Meituan case study final

Meituan case study final

• 1.
  MEITUAN DIANPING’S PATH TOWARDS PROFITABILITY ACASE STUDY HANS TUNG, Managing Partner of GGV Capital
• 2.
  For more ontech in China: www.996.ggvc.com | www.hans.vc A SNAPSHOT OF MEITUAN DIANPING C H I N A ’ S “ S U P E R A P P ” I N C O N T E X T Source: http://meituan.todayir.com/attachment/2019082317480126273592448_en.pdf;https://www.chinainternetwatch.com/29703/meituan-q2- 2019/ China’s 3rd most valuable tech company replaced Baidu as the third biggest tech company in China $56 Bn In market cap equals Uber as of Q2, 2019 $3.17 Bn In revenue 12X Yelp for of Q2, 2019
• 3.
  For more ontech in China: www.996.ggvc.com | www.hans.vc A SNAPSHOT OF MEITUAN DIANPING Source: http://meituan.todayir.com/attachment/2019082317480126273592448_en.pdf; https://www.chinainternetwatch.com/29703/meituan-q2-2019/ 422.6 million annual transacting users 7.50 dollars average revenue per user per quarter 25.5 times average no. of transactions per annual transacting users TOP 5 in app transaction category Food Delivery Hotel bookingRestaurants EntertainmentBeauty Services 5.9 million active merchants, 16.2% yoy growth
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  For more ontech in China: www.996.ggvc.com | www.hans.vc Yelp Meituan Dianping
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  For more ontech in China: www.996.ggvc.com | www.hans.vc Train/Airplane tickets Restaurants Review Hotel booking Food Delivery Bike Sharing Ride Hailing Movie and show tickets Comparable to Yelp Comparable to Fandango Comparable to Uber Comparable to Lime*. Meituan offers peddle bikes only as of Aug. 2019. Comparable to GrubHub Comparable to booking.com Comparable to Kayak
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  For more ontech in China: www.996.ggvc.com | www.hans.vc Movie and show tickets Added in Meituan Meituan started to provide software services to merchants Yelp went public on NYSE in Mar.2, 2012 Meituan was launched in 2010 as a Groupon business Yelp bought Eat24 Yelp sold Eat24 to GrubHub 2012 2014 2016 2018 Food delivery and hotel reservation was added into Meituan in 2013 Uber launched Uber Eats 20152013 Meituan and Dianping merged 2017 Ride hailing added to Meituan MEITUAN’S EVOLUTION OVERTIME
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  For more ontech in China: www.996.ggvc.com | www.hans.vc SEGMENT BREAKDOWN FOR REVENUE AND PROFIT Revenue Profit Source: http://meituan.todayir.com/attachment/2019082317480126273592448_en.pdf
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  For more ontech in China: www.996.ggvc.com | www.hans.vc Source: http://meituan.todayir.com/attachment/2019082317480126273592448_en.pdf https://www.yelp-ir.com/news-releases/news-release-details/2019/Yelp-Reports-Fourth-Quarter-and-Full-Year-2018-Financial-Results/default.aspx REVENUE BY TYPE
• 9.
  For more ontech in China: www.996.ggvc.com | www.hans.vc Source: http://meituan.todayir.com/attachment/2019082317480126273592448_en.pdf https://www.yelp-ir.com/news-releases/news-release-details/2019/Yelp-Reports-Fourth-Quarter-and-Full-Year-2018-Financial-Results/default.aspx 16.2% BEGINNING OF VIRTUOUS CIRCLE Food Delivery 3% yoy growth rate in advertising revenue 27% In-store, hotel and travel 50% yoy growth in the no. of active marketing merchants yoy growth in advertising revenue yoy increase in no. of active merchants 2019 Q2 Advertising Revenue
• 10.
  For more ontech in China: www.996.ggvc.com | www.hans.vc MEITUAN OFFERS MERCHANTS MORE CHANNELS TO REACH CONSUMERS Merchant Consumer Groupon and discounts Advertising and reviews Pay for users’ rides Becomes informed Merchant Advertising Consumer Before After $ $ $ $
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  For more ontech in China: www.996.ggvc.com | www.hans.vc SUPER APP APPROACH IMPROVES USER RETENTION Source: Trustdata Report on China’s Food Delivery Business
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  For more ontech in China: www.996.ggvc.com | www.hans.vc SUPER APP APPROACH IMPROVES USER STICKINESS Source: Trustdata Report on China’s Food Delivery Business
• 13.
  For more ontech in China: www.996.ggvc.com | www.hans.vc FOOD DELIVERY REVENUE SIZE 0 0.5 1 1.5 2 2.5 3 3.5 Meituan Dianping Uber Grubhub Yelp Total Revenue Revenue from Food Delivery (including advertising) Billions (USD) Source: Financial statements from the companies' website
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  For more ontech in China: www.996.ggvc.com | www.hans.vc STEADY RISE IN MARKET SHARE Source: Trustdata Report on China’s Food Delivery Business
• 15.
  For more ontech in China: www.996.ggvc.com | www.hans.vc RISING SUPER APPS IN EMERGING MARKETS 1st Decacorn in SEA On demand Delivery Unicorn in LATAM On Demand Delivery Unicorn in India
• 16.
  For more ontech in China: www.996.ggvc.com | www.hans.vc SCMP: https://www.scmp.com/tech/article/2157177/how-grabs-ceo-steered-it-garage-malaysia-southeast-asias-most-valuable- tech
• 17.
  For more ontech in China: www.996.ggvc.com | www.hans.vc For more on Meituan-Dianping, listen to our interview with Tao Zhang, founder of Dianping, on the 996 podcast PODCAST SEARCH “996” IN ANY PODCAST APP