Tag: meituan

Fitch Downgrades Meituan to ‘BBB-‘ from ‘BBB’; Outlook Remains Negative
Ecommerce

Fitch Downgrades Meituan to ‘BBB-‘ from ‘BBB’; Outlook Remains Negative

Fitch Ratings has downgraded Chinese e-commerce platform Meituan's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BBB-' from 'BBB'. The Outlook remains Negative. Fitch has also downgraded Meituan's senior unsecured rating and ratings on its bonds to 'BBB-' from 'BBB'. The downgrade reflects the greater regulatory uncertainty facing Meituan, which increases volatility in its profitability and investments. Fitch expects regulations enforcing delivery-rider benefits to pressure the operational efficiency and margin of Meituan's food-delivery operation. In addition, the company's new initiatives could evolve based on market opportunities and regulations, which reduces visibility on execution and the investment amount. As a result, we expect visibility on cash flow generation to...
Meituan and other food delivery services ordered to pay higher wages
Politics, Tech

Meituan and other food delivery services ordered to pay higher wages

Chinese regulators have ordered online platforms to ensure food delivery riders earn above the country’s minimum wage, that riders be freed from unreasonable demands placed upon them by algorithms, and that these workers have access to social security and a place in a union, in a likely financial blow to big delivery services companies such as Meituan. The guidelines, published on Monday afternoon by the State Administration for Market Regulation (SAMR) along with six other government agencies in Beijing, are designed to protect basic labour rights for riders, including a base income, work safety, food safety, a decent working environment and access to insurance coverage. meituan delivery The policy guidelines come as China ramps up a campaign to rein in Big Tech, forcing the sec...
Meituan planning to hire 60,000 and  expand into new sectors
Ecommerce

Meituan planning to hire 60,000 and expand into new sectors

Chinese food delivery giant Meituan said it aimed to hire 60,000 new employees in 2021 as the company expands into new areas of businesses such as group community buying. Meituan’s plan includes recruiting engineers, customer managers, and logistics professionals, the company said in a statement on Wednesday. Meituan's services also include hotel booking and bike sharing. They had a total of around 69,000 employees at the end of 2020 according to its annual report. This week Meituan also announced that they are re launching their ride hailing business. The Beijing-based company’s aggressive hiring plan comes amid regulators' tightened scrutiny on the platform companies in the country. China’s market watchdog announced an antitrust probe into Meituan in April, focusing on a pr...
Chinese e-commerce giant Alibaba formed a new life services division to take on Meituan
Life Services

Chinese e-commerce giant Alibaba formed a new life services division to take on Meituan

Chinese e-commerce giant Alibaba Group Holding has formed a new life services division that covers digital mapping, online travel booking and food delivery in its latest corporate restructuring, a move that is poised to ratchet up competition with on-demand local services market leader Meituan. Alibaba partner Yu Yongfu will lead the new group that includes digital mapping platform AutoNavi. Another business they will operate is the online travel business Fliggy, local services platforms Ele.me and Koubei. This is according to an internal letter issued last Friday by Daniel Zhang Yong, chairman and chief executive of Alibaba. The businesses under the division all provide location-based services. The term generally stands for software technologies that apply geographic data to provid...
Meituan  announces plans for drone logistics network at 2021 WAIC
Ecommerce, Logistics, Tech

Meituan announces plans for drone logistics network at 2021 WAIC

During this year's WAIC (World Artificial Intelligence Conference) in Shanghai Meituan has introduced a new self-developed drone model. The Company also announced plans for a drone logistics network pilot program in Shanghai. During the presentation Meituan demonstrated how drones and delivery riders could conceivably work together to deliver orders. In a partnership with local government, Meituan will explore opportunities for the construction of a demonstration center in Shanghai’s southwestern district of Jinshan. This center will run pilot operations for an urban low-altitude logistics network. It will be the first of its kind to be established in China. The three-pronged network of drones, ground support infrastructure (landing ports, battery changing stations), and cloud-base...
Meituan re-launches ride-hailing app
Tech

Meituan re-launches ride-hailing app

The timing couldn't be more perfect for Meituan to launch their ride hailing app again. On Friday Meituan announced that they are re launching Meituan Dache right after apps of Didi Chuxing were barred from accepting new users and were removed from app stores. The Meituan Dache app was launched in February 2017 and was merged into Meituan App in April 2019. Within 10 days after Meituan launched its car-hailing service in 2018 in Shanghai it captured one-third of the local market, media reported. In June 2019 Meituan Dache was removed from app stores in order to control costs following sustained losses according to the company. The ride-hailing app of Meituan served as an integration platform that accommodated other ride-hailing companies. China is now the world's largest car-...