AsianFin -- Meituan’s overseas app Keeta on October 9 officially jumpstarted operations in Riyadh, Saudi Arabia, Keeta’s third international city after Hong Kong and Al Khobar, Saudi Arabia.
According to sources, Qiu Guangyu, head of Meituan’s overseas business platform Keeta, has been transferred from Hong Kong to Riyadh, along with several Meituan’s Chinese employees to spearhead local business expansion.
Following Keeta's launch, Qiu expressed optimism about the new venture, saying “We are excited to enter this vibrant market, providing convenient and diverse delivery services to meet the unique needs of Saudi consumers, and to support the Vision 2030 initiative.”
Keeta, with its strong Chinese internet roots, introduced several promotions upon launch, including a 50% discount on first orders and free delivery. These offers have proven highly attractive to local consumers, particularly the free delivery policy.
Several Chinese workers in Riyadh pointed out that delivery fees had been the final hurdle when ordering food. “Delivery fees of 20 to 30 SAR (about 40-60 yuan) always made us hesitate,” one worker said.
Another local worker, Mumu, explained that with delivery fees often equating to the cost of the meal itself, many people were forced to subscribe to membership programs on delivery platforms to waive those fees.
Now, with Keeta offering free delivery, he said, "I’ve used Hunger Station and Noon before, but now that Keeta has free delivery, I’ll definitely give it a try."
In addition to free delivery, Keeta introduced an "On-Time Delivery Guarantee" with compensation policies for late deliveries. For delays of 15 to 30 minutes, customers receive a 10 SAR voucher; for 30 to 45 minutes, a 20 SAR voucher; for 45 to 60 minutes, a 30 SAR voucher; and for delays over an hour, a 50 SAR voucher.
This aggressive approach to customer service left Li Li, another Riyadh resident, astonished. “When I heard about the compensation, I thought Meituan (Keeta) was committing business suicide,” she said.
Delivery delays in Saudi Arabia are common, and Mumu noted that many delivery drivers are foreign laborers from India and Pakistan, who are generally poor in Arabic or English, leading to time-consuming miscommunication.
Given these challenges, Keeta could face significant compensation payouts due to frequent late deliveries.
While many Chinese expats crave authentic Chinese food after a hard day's work, it's often difficult to find their preferred dishes on local platforms, including Keeta. Li shared her experience of trying Keeta but ended up ordering from Wukong Overseas Gokoo, a Chinese-focused delivery platform, as her desired meal wasn't available on Keeta.
Despite Keeta’s competitive delivery policies, limited food choices could remain a pain point for Saudi delivery platforms. Mumu pointed out that most of the local delivery platforms he used had a relatively limited food options.
Xiao Jia, a Chinese entrepreneur running a restaurant in Saudi Arabia, told AsianFin that while her restaurant is available on Wukong Overseas, it has not yet launched on Keeta.
Keeta faces fierce competition from more locally established food delivery platforms such as Hunger Station, Jahez, Talabat, and Noon. According to AsianFin, there are over 50 food delivery platforms currently operating in Saudi Arabia, including those run by major chains like McDonald’s, KFC, and Domino’s. This scenario is reminiscent of the "Group Buying Wars" of China’s past.
Meituan has made its ambitions clear, previously announcing a $266 million investment to support its growth in Saudi Arabia. With Keeta’s launch, the stage seems set for a new "delivery war" in Saudi Arabia.
According to data from Similarweb on October 8, Hunger Station, Ninja, and Jahez are the top four food delivery platforms for both Android and iOS users in Saudi Arabia. Keeta currently ranks 30th among Android users and 13th for iOS users.
Public data indicates that Saudi Arabia’s food delivery market has a user penetration rate of 44.2%, with projections estimating the market size to grow to $13.5 billion by 2030.
Can Keeta carve out a share of this growing market dominated by established players? Many in the Chinese expat community are optimistic. “Chinese brands and software are popular in Saudi Arabia. They’re more advanced and easier to use than local platforms,” said Xiao Jia.
