On Friday, Meituan released its financial results for the third quarter of 2021 as of September 30, 2021. The report shows that the company’s revenue reached 48.829 billion yuan ($7.6 billion), an increase of 37.9% over last year.
Meituan‘s quarterly R&D expenditure increased by about 60% year-on-year to 4.7 billion yuan. As a result, both adjusted EBITDA and adjusted net profit experienced negative year-over-year growth for the third quarter of 2021 and turned to negative 4.1 billion yuan with an adjusted net loss of 5.5 billion yuan, respectively.
This quarter, however, saw the number of annual transacting users of Meituan in the past 12 months increase substantially to 670 million, a record high. The consumption frequency of users on the platform also continued to increase, with the average annual number of transactions of users reaching 34.4, an increase of 29% year-on-year. These numbers suggest show that consumers placed about 23 billion orders through the company’s applications.
This quarter, Meituan also provided further welfare to its couriers. Couriers were ensured a reasonable income, scientifically established standards for work intensity, improved social security benefits, and other benefits. In addition, Meituan hosted more than 110 courier feedback panel sessions across the country while improving the openness and transparency of its order dispatch system.
“For the third quarter of 2021, we further enabled our small and medium merchants and supply chain partners to improve their digital and online operations,” said Meituan Founder and CEO Xing Wang. “We will also bear our social responsibility in mind, further contribute to the high-quality growth of the national economy, do our best to contribute to the development of the greater society, and support the objective of ‘Common Prosperity’ through carrying out our mission ‘We help people eat better, live better.'”
With the increasing demand of consumers, this quarter, Meituan provided consumers with special promotions from quality merchants of late night snacks in over 15 cities, an idea that proved particularly popular during the summer months.
Furthermore, throughout the quarter Meituan continued to deepen the field of unmanned distribution. The company has successively signed pilot demonstration cooperation contracts with Shenzhen Bay SIC Super Headquarters Center and Jinshan District of Shanghai. In the future, Meituan plans to open a trial operation route for real users in Jinshan in the first half of next year.
More than 90% of the core components of Meituan‘s urban low-altitude logistics network are independently developed by the company. At present, Meituan UAV has been in trial operations in Shenzhen for nearly one year, providing instant delivery service for more than 8,000 households in 7 regions across the city.