Chinese food delivery and rating platform Meituan Dianping’s market value has blown past $100 billion after its stock rose 10.4% Tuesday, making it China’s third-most-valuable internet company. At the same time, orders placed on the platform are gradually reviving. According to the company, food delivery orders had bounced back to 90% of their pre-pandemic level by mid May, while its group-buying business was back to 80% and hotel bookings exceeded 70%.
According to Meituan’s financial report for the first quarter of 2020, the company’s revenue dropped 13% due to COVID-19 hitting the Chinese food and travel industry. Wang Xing, Meituan’s CEO, said there had been a “dramatic drop in our food delivery volume” from the end of January to late February. The company has since launched “contactless delivery” services to reboot delivery orders during the quarantine.
On May 16, the Hong Kong listed company announced a major organizational structure adjustment that aims to further integrate its online and offline brands. Multiple business branches including power banks, two-wheel scooters, public transportation and map services that originally answered to the LBS (Location Based Services) department but were reassigned to Meituan Platform.
After the adjustment, executives in charge of each branch will answer to Li Shubin, Head of Meituan Platform, while Li answers directly to Wang Huiwen, co-founder of Meituan Dianping. Wang is also in charge of the LBS Department, which was renamed as Transportation Business Department.