CMSC: The global food delivery market has vast potential, MEITUAN-W (03690) and Didi are ushering in a new era of food delivery going overseas.

CMSC released a research report stating that regions with large overall market potential (strong industry demand, ample supply of catering merchants, low labor costs, and relaxed policy environment) and insufficient competition (high concentration or room for industry efficiency improvement) are more suitable as destinations for food delivery going international, with significant development opportunities in the Middle East, Japan and South Korea, Southeast Asia, and Latin American markets. Chinese internet platforms have competitive advantages in organization execution, systematic marketing capabilities, on-site promotion capabilities, technology, and data, and are optimistic about the broad development space for top internet platforms going international in the international food delivery market. Key points from CMSC: Global food delivery market: a $500 billion market, with the Asia-Pacific and Europe and America leading in size, and the Middle East and Latin America leading in growth rate. The global food delivery market penetration rate continues to increase steadily. According to Euromonitor data, the market size is expected to reach $495.6 billion by 2023, with a CAGR of approximately 14.5% from 2020 to 2023, and the size is expected to exceed $550 billion by 2024, with a projected YoY growth rate of 11%. In terms of regional distribution, the Asia-Pacific, North America, and Europe are the top three food delivery markets globally. In terms of regional growth rate, the Middle East, Latin America, Asia-Pacific, and Europe regions are growing faster post-pandemic than the global average. In terms of industry penetration rate, the Asia-Pacific and Middle East regions have a relatively higher food delivery penetration rate. Furthermore, analyzing leading global food delivery companies, Deliveryhero, UberEats, DoorDash, and other international leaders have expanded their operations by mergers and acquisitions and setting up multiple country sites, covering suitable markets in North America, Europe, the Middle East, and Southeast Asia. Food delivery markets vary by country, with greater potential for international expansion in the Middle East, Asia-Pacific, and Latin America markets, where Chinese internet platforms have a competitive edge in food delivery. The report provides detailed analysis on the size and penetration rate of food delivery markets, key players and industry patterns, and market development opportunities in major regions such as North America, Europe, the Middle East, Japan and Korea, Southeast Asia, and Latin America, emphasizing the need to consider overall market potential and competitive landscape when assessing the potential for food delivery international expansion. In regions where industry demand is higher, catering merchant supply is more adequate, labor costs are lower, and the policy environment is more favorable, there are greater opportunities for food delivery market development and international expansion. In regions with unstable duopoly or significant room for industry efficiency improvement, there is more space... Chinese internet companies going international in food delivery have a strong organizational execution capability as their foundation, with promising potential for Meituan-Dianping. Chinese internet platforms going international in food delivery have core competitive advantages compared to international competitors, focusing on strong organizational combat capabilities, as well as marketing and on-site promotion capabilities, and technological and data resources. 1)Meituan-Dianping going international in food delivery: KeeTa is the first to enter Hong Kong and the Middle East, and open up the globalization process. Its core operating strategy is to establish differentiation advantages through investment in fulfillment (free delivery + time guarantee) and price (subsidies for new customers + low-price meals for one person), thus quickly gaining a market share advantage. Currently, KeeTa has captured about half of the market share in Hong Kong and has achieved over 100,000 daily orders in Riyadh, Saudi Arabia. Expecting future profit improvements in the Hong Kong market and the expansion and profit elasticity of the Middle Eastern market, it is estimated that KeeTa in Hong Kong and the Middle East could contribute annual profits of up to 5 billion yuan in the long term. 2)D... Investment advice: The global food delivery market has vast potential. Optimistic about the prospects of top domestic internet platforms going international, recommend MEITUAN-W (03690), and Didi. Risk alert: Macroeconomic risks, intensified market competition, overseas policy risks.