The Chinese Super App with a $55B valuation

1. Meituan
The Chinese Super App with a $55B valuation

2. Company summary
Core businesses & timelines
Management principles
Motto & core values
Product deepdive
Homescreen layout & product learnings
Content:

3. Meituan DianPing
*acquired
Meituan waimai Mobike
*acquired
Paotui Ella
supermarket
Hazelnut
Meituan
Dache
The Ultimate Super App: from discoverability → transaction
8 Business verticals:
52B
Annual GTV in USD
310M
Annual transacting users
18.8 txns
Annual avg txns/ user
4.4M Mex
Annual active merchants

4. The Ultimate Super App: from discoverability → transaction
Equivalent to:
52B
Annual GTV in USD
310M
Annual transacting users
18.8 txns
Annual avg txns/ user
4.4M Mex
Annual active merchants

5. 2003
Restaurants
2010
Local Deals
2012
Movie
2013
Food delivery,
Hotel
2014
Attraction
Tickets
2015
Air tickets,
train tickets
2016
ERP,
Payments,
Supply chain
solutions
2017
Car-hailing,
Grocery store
2018
Grocery
delivery,
Bike-sharing
Transition from lifestyle services → utility services
Expand product offering on an annual basis
Expansion of service categories

6. Meituan’s management principles
Company motto:
Eat better, Live better
Outward-facing core values:
Be user- centric, Collaborate to achieve win-win
Inward-facing core values:
Users 1st
, Merchants 2nd
, Employees 3rd
, Meituan 4th
, CEO 5th

7. Company motto:
Eat better, Live better
Outward-facing core values:
Be user- centric, Collaborate to achieve win-win
Inward-facing core values:
Users 1st
, Merchants 2nd
, Employees 3rd
, Meituan 4th
, CEO 5th
Meituan’s management principles

8. “Eat better, Live better”
Meituan’s core product is food
- Hypergrowth of food delivery in 3 years
- Food accounts for 90% of feed
- Minimal spend on consumer promos
- Highest number of user touchpoints
*Refer to appendix (slide 28) for financial breakdown
% of revenue from food delivery:
Source: Meituan IPO documents

9. Company motto:
Eat better, Live better
Outward-facing core values:
Be user- centric, Collaborate to achieve win-win
Inward-facing core values:
Users 1st
, Merchants 2nd
, Employees 3rd
, Meituan 4th
, CEO 5th
Meituan’s management principles

10. “Collaborate to achieve win-win”
Scale fast through partnerships
Meituan → Agoda: Chinese inventory
Agoda → Meituan: Global inventory
Meituan services embedded in WeChat & QQ apps
(Accounts for 10% of transactions)
Exclusive movie ticketing channel with Maoyan
(Investor)
(Investor)
(Investee)

11. Company motto:
Eat better, Live better
Outward-facing core values:
Be user- centric, Collaborate to achieve win-win
Inward-facing core values:
Users 1st
, Merchants 2nd
, Employees 3rd
, Meituan 4th
, CEO 5th
Meituan’s management principles

12. “Users 1st
, Merchants 2nd
”
Customer-first mentality
1. Pioneer of the Guaranteed Non-conditional Refund
Immediate full refund for all fraudulent transactions from stolen cards
2. Made compensation on behalf of partner’s mistake
Reimbursed 12K users $50 after DairyQueen defaulted on a $29 voucher
CEO Wang Xing: “Having users guarantee merchants, but
having merchants don’t guarantee users”

13. Product Deepdive
Homepage, pop-ups, floating widgets, tabs

14. 1.Tools
2.Banners
3.Tiles
4.Curations
5.Feed
6.Tabs
6 segments to Meituan’s page structure
Homepage

15. Weather
Location
Prefilled search bar
Quick access
(QR scanner & payment, Mobike, FaPiao)
Expandable banner
(Ads, promos)
Primary &
secondary tiles
Text badges
(Dynamic text)
Curated lists
Homepage

16. New users:
- Red packets to incentivise 1st purchase
- Mobile number (For OTP & sms notifications)
Existing users:
- Reminder to enable notifications
Welcome pop-ups
Different CTAs for new & existing users

17. Red packets Curations Filters
Avenue for variable/ad hoc content
Floating Widgets
Floating widgets prompting
users to explore new content

18. Bottom Navigation tab
Users with immediate purpose → location-based
(Different category names but recycle content)
Users without purpose → entertainment
(food articles, merchant feature, videos, fashion)
Browsing history, favourites, top-up
Catering for different user needs
Users with advanced purpose → Making plans

19. Top 5 product learnings & benefits:
1. Repackage the same content
2. Tiles facilitate cross-selling
3. Standardised page
4. Accessibility of content
5. Refreshed homepage
Minimise content creation
Increase time spent
Improve tracking
Drive discoverability
Sustain user interest

20. 1. Repackage content to minimise content creation
Replicated into
curated list & feed
Replicated into a
weekend to-do list
Homepage
Curations are algorithmically
driven by Meituan, that can be
easily filtered

21. Distribute traffic in 4 ways
Convenience of multiple entry points for Pax
95% Screen Utilisation
Maximising real estate on the homescreen
2. Quick access to every vertical from the 1st screen
①
②
③
④
* Screen Utilisation defined by number of CTAs
Homepage

22. 3. Tiles facilitate cross-selling and reiterations
Opening P1 P2
Leisure tile

23. 4. Standardised page layout & CTAs (1/3)
Homepage Food
Standardisation
Easier for tracking & users to build habits
95% Screen Utilisation
Maximising mobile app’s real estate

24. Standardised tabs at the top &
bottom of each page
For Meituan: Navigation bars are the
main avenues for distributing traffic,
with double-digit CTRs
* might be unique to China
4. Standardised page layout & CTAs (2/3)

25. Standardised CTAs throughout the user
journey when browsing different categories
Internally: Easier for data analyst to
implement instrumentation
Externally: Easier to inculcate user habits
Hotel Movies
4. Standardised page layout & CTAs (3/3)

26. 5. Refreshed content on homepage
Autoscroll banners
Badges refreshes on
diff tiles with diff text
Moving widgets
Updated curations
High-usage apps requires
elements of engagement and
unpredictability
Examples:
FB → autoplay videos
Taobao → flash deals

27. Appendix

28. Segment:
Type:
Growth of Food delivery
- Majority of revenue (62%)
- Fastest growing segment
5% → 62% in 3 years
Product first, monetize later
85% of revenue from commissions
Ads are secondary
Revenue source:
2015 2016 2017

29. 1. Improving supply & service
of delivery
1. Minimal promos
Focusing on food delivery

30. END

31. Excluded

32. Meituan → Groupon
Leading online marketplace for services
Dian Ping → Yelp
Leading online destination for discovering lifestyle services
2010:
Meituan founded
2015:
Meituan-Dianping merger
2018:
Files HK IPO

33. How did Meituan win DianPing?
Mei Tuan
- Focused on tier 2 - tier 4 cities
- Group buying was a sustainable
business (better cash flow)
Dian Ping
- Focused on tier 1 cities
- Lack substantial revenue stream
- Main value was only UGC
Offensively for Meituan: Acquire tier 1 cities & complementary business
Defensively for Dian Ping: Would not win a coupon war

34. - 5.8B transactions, GMV 357B
- 310M users, 4.4M active mex
- 2nd largest hotel reservation platform (dom)
- 97M tixs travel & leisure ticketing service
- Transaction per user increased from:
10.4 (2015) → 12.9 (2016) → 18.8 (2017)
- Top 10% of users made ave 98 transactions
- 531k daily active delivery riders
- Ave delivery time 30 mins
Top line figures (As of 2017)
Platform
Users
Drivers

35. Basic plan
- Free listing
- Delivery infrastructure
- Payment systems
- Cloud based ERP
“Food delivery - demand is natural, build supply first”
Advanced plan
- Targeted online marketing; keyword
search, banners, text/graphical links
- Sell ad space & recommendations
- Supply chain and financing solutions
How Meituan supported merchants:

36. How Meituan built food delivery:
➢ Quantity of merchants first, quality later
➢ Acquire big players eg. KFC, Macs
➢ Optimised allocation system
➢ Delivery insurance (90% unclaimed) - MT pays but delivery team has KPIs
➢ Spring festival initiative: incentive to come back early + refer a friend and earn
○ Acquired new riders, and fulfilled demand while Baidu lost

37. Other screengrabs

38. 2) Groupon vouchers eg. Set meal/entrance
ticket/beauty packages
3) Movie tickets
1) Food recommendation articles (by writers eg.
BJ foodie group) Akin to Wechat subscription
account (follow, comment, like, share)
Food is the most common use case - 90% of feed
Feed

39. Flash sale
Map view of merchants
Tiles:
Meal vouchers
Restaurant reservations
Reiterated delivery tile
Different cuisines ...
Paid banners &
MT promos
Filter by: cuisines, location,
MRT station, ratings
Food tile

40. Key merchant info
Featured on curation/leaderboard
Coupon purchase
Recommended food
(by Users)
Autoscroll tabs:
Reviews, merchant full details
*All info accessible within 1st page
Share and favourites
Food tile

41. Delivery location
*Importance
CTA banner
Tiles:
Supermarket, flowers,
medicine, lunch/dinner/supper
* tile placement changes
Curated food
Delivery tile

42. Delivery tile:
Requires 2 clicks and 1 scroll away to view feed
Focused on curated lists (eg. Leaderboards,
wednesday specials, school reopen season)
The Paradox of Choice
Make decisions for users (Food/POI)

43. Recommended for you, food,
movies, medical, finances….
>20 categories
>100 sub-categories
Categories