Keeta is now officially available in four cities across Saudi Arabia.

Author | Gu Nian

Editor | Yang Zhou

Two new cities opened in less than a week.

Less than six months after its official launch in Saudi Arabia, Keeta, Meituan's overseas food delivery platform, has swiftly expanded its presence to additional Saudi cities.

According to multiple sources, Keeta, the overseas food delivery arm of Meituan, has opened in two more cities since New Year's Day. The first is Jeddah, situated 780 kilometers from Riyadh and launched on January 1; the second is Mecca, 710 kilometers from Riyadh, which officially launched on January 6.

Both cities are roughly a 10-hour drive from Riyadh and Al Khobar, where Keeta was initially launched half a year ago. However, the two newly opened cities are geographically close, with only about an hour's drive separating them.

Some analysts believe that, in contrast to Keeta's cautious approach when it first entered Saudi Arabia—starting with Al Khobar before expanding to Riyadh—the current speed of opening two cities in less than a week suggests that Keeta may have identified replicable methods for city launches.

For instance, as early as September, when Keeta launched in Riyadh, it had already begun organizing a promotional team composed of locals to gather in Jeddah to prepare for the city's launch in advance. This proactive approach indicates that Keeta's overseas expansion is progressing at a pace much faster than it appears on the surface, with the official city launch being merely the culmination of software deployment.

Regarding the opening of its food delivery business in two new cities, Keeta CEO Qiu Guangyu stated, "This is a significant milestone for Keeta, and we will continue to expand our operations in the Kingdom of Saudi Arabia. Aligning with Vision 2030, our goal is to support local businesses and enhance the quality of life for residents."

With its blitzkrieg-like approach to city launches, as of January 8, data from the Google Play Store reveals that Keeta has become the most downloaded food delivery app in Saudi Arabia. Just half a month ago, Keeta was ranked second on this list. This demonstrates that the rapid pace of city launches in the physical world is swiftly reflected in the software services of the virtual realm.

01 Concerns Over Money Laundering?

"So this app suddenly overtook HungerStation and Jahez. I'm curious about your experience with it? Free delivery plus a 100 riyal (approximately $26.6) discount coupon immediately made me think of money laundering, but I'm not entirely sure. How do they actually make money?"

On social media platforms, many local netizens have started noticing this food delivery app from China. However, the no-minimum free shipping and substantial discounts for new users have left many Saudi netizens puzzled.

Similar to when it first launched in Saudi Arabia, in the Jeddah and Mecca regions, local consumers can enjoy free door-to-door delivery services with no minimum order through Keeta, along with exclusive McDonald's delivery offers and SR100 ($26.6) discount coupons for new users.

These promotions have even begun to make some Saudi netizens uneasy and question their authenticity. One netizen asked on a forum, "Is Keeta a reliable food delivery app?" A response below stated, "It's real, I just tried it. I used to use HungerStation (a local food delivery app), but it always automatically selected a tip."

In response to Keeta's blitzkrieg, the two local platforms in Saudi Arabia have not mounted an effective defense. According to download data from the Google Play Store, as of January 8, HungerStation ranks third on the list, and Jahez ranks fourth, with ratings of 3.6 and 2.1, respectively, far below Keeta's 4.6 rating.

Currently, Keeta has 13,000 partner restaurants, with global chain restaurants such as McDonald's, KFC, and Starbucks serving as the backbone, complemented by popular local restaurants as the main service providers. To support its delivery network, Keeta has registered over 15,000 riders to ensure timely delivery to customers' homes.

It is noteworthy that in November last year, data disclosed by Keeta CEO Qiu Guangyu in an interview with Argaam showed that Keeta had only 7,000 partner restaurants and over 10,000 registered riders. In less than two months, the number of partner restaurants has increased by nearly half, and the number of riders has grown by nearly 5,000.

02 Synergizing Three Businesses

Keeta is bringing the Chinese Internet strategy of subsidy-based competition, such as free shipping and large discount coupons, into the business environment in Saudi Arabia.

This strategy is also pivotal to Keeta's success in Saudi Arabia. In November last year, Keeta CEO Qiu Guangyu emphasized in an interview with Argaam that the key to standing out in the competitive Saudi market is:

"The first challenge is the high delivery cost, which has always been a common reason for user dissatisfaction. Therefore, more than 90% of the restaurants on the Keeta platform offer free delivery services. The second is the issue of delivery punctuality. Leveraging our advanced technology, we are committed to improving punctuality. If delivery is delayed by more than 15 minutes, compensation will be provided."

In a summary sharing session in December, Qiu Guangyu stated that Keeta's motto is "start early, summarize late." The strategy of acting before speaking has been further demonstrated in subsequent business operations. According to insiders, the food delivery business is just the first step for Keeta, with the upcoming overseas expansion of Elephant Supermarket and Meituan's drone delivery business being the primary focus.

Elephant Supermarket specializes in grocery retail, while the drone delivery business is Meituan's supplementary strategy for delivery methods. In China, these two businesses emerged as new growth areas after the maturation of food delivery. Currently, Keeta may be preparing to develop these three businesses in parallel overseas.

After launching its food delivery business in Saudi Arabia in October, it was followed by news in November that Elephant Supermarket was also preparing for overseas expansion. Then, in December, Keeta Drone obtained the first commercial operation qualification certificate in the Dubai region, officially gaining the qualification to conduct commercial drone operations in the United Arab Emirates.

Clearly, after taking the initial step in overseas food delivery, this "going overseas + drone" business led by Wang Xing, the founder of Meituan, is accelerating its pace.

While Meituan is opening up new markets with a series of blitzkriegs, it will face new local competitors in each new region. Currently, Meituan has not yet expanded its business to Southeast Asia, such as Indonesia, nor has it entered the territory of Grab, a fellow listed company.

Before competing with more truly global giants in the local lifestyle sector, Meituan may want to accumulate more experience and resources in more overseas untapped markets.

This article is an original article by "City Image"

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