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Meituan Dianping restructures and removes hotel & travel businesses

Date:2018-11-01 16:31Source:TripMaster.CN ReadingNumber: Times

Meituan Dianping yesterday announced internally a new round of organizational upgrades. The strategic focus will be on food, and it will be positioned as a Food+Platform comprising a user platform and in-store and in-house business units. In new business development, B2B platform Kuailyu and fresh focused Xiaoxiang will continue to explore business areas. A new LBS (Location-Based Services) platform will be established as well.

The user platform will be managed by Huiwen Wang. The review platform continues to be handled by Hai Huang and Huiwen Wang. Meituan’s comprehensive in-store business, hotels, domestic vacation services and Zhenguo Homes will be integrated into the in-store business unit, headed by Chuan Zhang. The transportation business is transferred to the LBS platform.

The details of the realignment are as follows: 

1. Set up a user platform consolidating the Meituan, review and service experience platforms to enhance user experience and service capabilities. 

2. Set up an in-store business unit to coordinate in-store catering, integrated services, accommodation, domestic vacation services, Zhenguo Homes, the marketing platform (advertising platform and brand advertising), RMS (SaaS cashier and order), aggregated receipts, etc. Chuan Zhang is appointed as the president of the in-store business unit.

3. Set up an in-house business unit, coordinating businesses such as takeaway, delivery, flash sales and smart kitchen. Puzhong Wang is appointed as the president.  

4. Establish the LBS platform providing LBS services, online car-hailing, transportation and unmanned delivery. The LBS platform is under the responsibility of Huiwen Wang.

In September this year, Meituan raised .2 billion through its initial public offering in Hong Kong and became the largest internet company listing in Hong Kong for nearly a decade.

Meituan announced interim results for the six months ended 30 June 2018 on September 27. The total Gross Transaction Volume (GTV) on its platform grew by 55.6% in the first half of 2018 to RMB 231.9 billion from RMB 149.0 billion in the same period of 2017. Total revenues increased by 91.2% to RMB 26.3 billion in the first half of 2018 from RMB 13.8 billion in the same period of 2017.

GTV of in-store, hotel & travel businesses grew by 10.6% to RMB 82.8 billion in the first half of 2018 from RMB 74.9 billion in the same period of last year. Revenues from in-store, hotel & travel businesses in the first half of 2018 increased by 44.1% to RMB 6.8 billion from RMB 4.7 billion in the same period of 2017. Gross profit increased to RMB 6.1 billion in the first half of 2018 from RMB 4.2 billion in the same period of 2017 while gross margin increased to 89.4% from 88.5%.


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