Meituan focuses on adjusting core local business

Meituan's organizational structure is being adjusted again.

Meituan, which has not adjusted its organizational structure for six years, has continued to make adjustments in 2024. On September 27, Meituan's Core Local Business released an internal email announcing a new round of organizational structure adjustments.

Specifically, this organizational structure adjustment will establish the "Core Local Business/Hotel Travel" division, which encompasses the Accommodation Business Unit, Ticket & Resort & Transportation Business Unit, and Homestay Business Unit, with Li Jinfei appointed as the head of Hotel Travel. Additionally, the "Core Local Business/Pharmaceutical Health Business Unit" will be established, encompassing the former Pharmaceutical Business Unit and related industries from the former Comprehensive Service Business Unit, with Li Xiaohui appointed as the head of the Pharmaceutical Health Business Unit.

Both new managers will report to Wang Puchong, CEO of Meituan's Core Local Business. Wang Puchong stated that Core Local Business will delve deeper into the industry chain in the future to better serve merchants as their assistants.

It is understood that Hotel Travel will be responsible for the overall operational synergy of Meituan's hotel and travel business, strengthening cooperation with upstream and downstream industries to better meet the diverse needs of consumers in accommodation, travel, and vacation scenarios, while also better serving hotel and travel merchants by providing them with rich data references.

The new Pharmaceutical Health Business Unit will build upon existing pharmaceutical and consultation services by adding more consumer medical scenarios. Leveraging the synergies between in-store and home delivery services, it will delve deeper into the industry chain to systematically establish a health industry ecosystem, providing consumers with products and services that cover the entire health cycle.

This is Meituan's fifth adjustment this year. Prior to this, in late February and late March, Meituan conducted two rounds of personnel adjustments, and in April, it made organizational structure adjustments: the Establishment of City Operation Business Unit, Chain Business Unit, and Supply Exploration Business Unit under the Takeout Business Unit, all of which report to Xue Bing, head of the Takeout Business Unit.

In August, Meituan merged its SaaS, cycling, and power bank businesses into "Software & Hardware Services," led by Zhang Chuan. Its Kuailv, Xiaoxiang, and Youxuan businesses were merged into "Grocery Retail," led by Guo Wanhuai. Its overseas business was officially renamed Keeta and is led by Qiu Guangyu. Other aspects remain unchanged.

In response to such significant changes, officials have provided their perspective. During a conference call for the company's semi-annual earnings results, Wang Xing addressed the topic of organizational structure adjustments, stating that the goal of these adjustments is to continue integrating the local business sector and further improve operational efficiency. "We have a clear direction for organizational structure adjustments and have already begun strengthening the synergies between our various businesses," he said.