Meituan reported total gross transaction volume (GTV) growth of 44.3% year-on-year to 515.6 billion yuan (US$76.65bn) in 2018. Annual transacting users increased by 29.3% year-on-year to 400.4 million. On average, the annual number of transactions each transacting user made increased to 23.8 transactions in 2018 from 18.8 transactions in 2017. Annual active merchants grew by 32.1% year-on-year to 5.8 million. Overall monetization rate rose to 12.6% in 2018 from 9.5% in 2017.
Total GTV grew by 44.3% year-on-year to 515.6 billion yuan (US$76.65bn):
- GTV of food delivery business increased by 65.3% to 282.8 billion yuan;
- GTV of in-store, hotel & travel businesses grew by 11.8% year-on-year to 176.8 billion yuan ;
- GTV from the new initiatives and others segment increased by 99.8% year-on-year to 56.0 billion yuan.
Total revenues increased by 92.3% year-over-year to 65.2 billion yuan (US$9.69bn):
- revenue from food delivery increased by 81.4% year-on-year to 38.1 billion yuan;
- revenues from in-store, hotel & travel businesses increased by 46.0% year-on-year to 15.8 billion yuan;
- revenues from the new initiatives and others segment increased by 450.3% year-on-year to 11.2 billion yuan.
Total gross profit increased to 15.1 billion yuan (US$2.24bn) as compared with 12.2 billion yuan in 2017. Selling and marketing expenses as a percentage of total revenues decreased to 24.3% from 32.2% in 2017. Negative adjusted EBITDA and adjusted net losses were 4.7 billion yuan and 8.5 billion yuan, respectively.
Company Business Highlights
In 2018, the daily average number of food delivery transactions increased by 56.3% to 17.5 million yuan (US$2.60 million). GTV of food delivery business increased by 65.3% to 282.8 billion yuan (US$42.03bn). Revenue from food delivery increased by 81.4% year-on-year to 38.1 billion yuan (US$5.66bn).
On the consumer front, Meituan utilized its offline operation teams, delivery network, and marketing resources as a whole to drive online traffic and attract new users. Meanwhile, it established a reward mechanism to incentivize user referrals through social media networks.
On the merchant front, Meituan’s delivery capabilities have been further strengthened to help its merchants increase the delivery radius. For example, there was an increase in the portion of delivery orders coming from more than 3 kilometers away.
In-store, hotel & travel
While the GTV of in-store, hotel & travel businesses grew by 11.8% year-on-year to 176.8 billion yuan (US$26.28bn) in 2018, the monetization rate increased to 9.0% from 6.9% primarily due to the increasing contribution of online marketing revenue.
As a result, revenues from in-store, hotel & travel businesses increased by 46.0% year-on-year to 15.8 billion yuan (US$2.35bn) in 2018. Gross profit from in-store, hotel & travel businesses increased to 14.1 billion yuan (US$2.1bn) in 2018 from 9.6 billion yuan in 2017. Meanwhile, the gross margin rose to 89.0% from 88.3%.
Domestic room nights consumed grew by 38.5% year-on-year to 283.9 million. Meituan launched the Black Pearl Restaurant Guide in January 2018, which further strengthened its brand awareness and helped reinforce Meituan Dianping as the go-to platform of quality dining selections for consumers and authoritative online marketing channel for premium restaurants in China.
In the Guide of 2019, a total of 287 restaurants in 22 cities in China and 5 cities abroad are listed. Total revenues increased by 92.3% year-on-year to 65.2 billion yuan (US$9.69bn) in the year ended December 31, 2018.
New initiatives and others
GTV from the new initiatives and others segment increased by 99.8% year-on-year to 56.0 billion yuan (US$8.32bn) in 2018. Revenues from the new initiatives and others segment increased by 450.3% year-on-year to 11.2 billion yuan (US$1.66bn) in 2018. Gross margin of the new initiatives and others segment experienced negative growth of 37.9% in 2018, compared with the positive growth of 46.0% in 2017.
Meituan stepped up our investment in the Restaurant Management System (“RMS”) and supply chain solutions. The RMS is revolutionizing the restaurant software industry with a SaaS model, which enables restaurants to digitize their entire operations and to better connect with online platforms.
In December 2018, in addition to further upgrading our RMS standard edition, Meituan also launched the RMS beverage vertical edition. Merchants can see real-time prices and inventory availability of food ingredients on Meituan’s Kuailv Mall mobile app and make orders anytime, anywhere.
Meituan launched pilot car-hailing services in Nanjing and Shanghai to increase high-frequency services. In April 2018, Meituan completed the acquisition of Mobike to better serve users’ high-frequency short-distance transportation needs, increase the touchpoints of the platform to consumers, collect more location-based service data, and expand cross-selling opportunities with other service categories.
In order to better direct offline traffic to our online platform, Meituan has added the portal to unlock the bikes in Meituan app to gradually cultivate the users to use Meituan app as the sole entry point to access bike sharing services.