On-Demand Local Services Provider Meituan Reports $11 Billion Earnings in 2023
On-Demand Local Services Provider Financial Overview
Meituan, the largest on-demand local services provider in China, reported that its 7.45 million delivery workers earned a staggering 80 billion yuan (approximately US$11.3 billion) in total income in 2023. Co-founder and CEO Wang Xing emphasized the company’s dedication to the wellbeing of gig economy workers, noting that about 4.5 million delivery riders are covered under a pilot insurance program for occupational injuries initiated in 2022.
Support and Challenges of Gig Economy Workers
In a market with a total of roughly 200 million gig workers, which is around 23% of the working population, platforms like Meituan and Ele.me have been compelled to enhance worker compensation and security. This demand for improved support follows various governmental measures aimed at reinforcing the gig economy.
Meituan's Business Strategies
Meituan has effectively adapted to market pressures, hiring over 5,000 new graduates annually and planning to recruit another 6,000 graduates from the Class of 2025. Additionally, the company is pioneering the low-altitude economy with drone deliveries, completing over 300,000 orders in major cities like Shenzhen and Shanghai.
Growth Initiatives and Financial Health
Despite a constrained economy, Meituan's Q2 results exceeded expectations, with revenue up 21.2% year-on-year to 82.3 billion yuan and profits soaring 142% to 11 billion yuan. The firm has also expanded its international services with Keeta in Saudi Arabia and strengthened its model with features like Pinhaofan and Shenhuiyuan.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.