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Meituan’s Keeta launches in Saudi Arabia, igniting competition and price hikes

Written by KrASIA Connection Published on   3 mins read

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Keeta, Meituan’s delivery app, enters the Saudi market through Al Kharj instead of the capital Riyadh.

Meituan’s overseas delivery app, Keeta, quietly launched in Saudi Arabia on the morning of September 9, marking the company’s first step outside China and signaling its ambitious international expansion.

To attract new users, Keeta is offering free delivery on orders over SAR 25 (USD 6.7) and discounts of up to 70% on select meals. Promising 30-minute deliveries or restaurant pickup options, the app aims to win over Saudi customers by focusing on convenience and value.

In a move similar to its phased rollout in Hong Kong, Keeta’s Saudi launch began in Al Kharj, a central city—not the capital, Riyadh—raising questions about the rationale behind the decision.

“What’s the secret of Al Kharj?” a social media user asked. “Keeta and even the local ride-hailing app Kaiian both started there.”

A commenter speculated: “Al Kharj may be smaller, but it has all the essential services. There’s lower employee turnover, cheaper housing and transport costs, and no traffic. Plus, it’s just 40 minutes from Riyadh. It makes sense to launch here.”

The commenter also suggested that Riyadh’s crowded market, dominated by established players, might have prompted Keeta to opt for a smaller, less competitive city.

Keeta’s expansion into Saudi Arabia was far from a spur-of-the-moment decision. As early as May last year, Meituan executives, including founder Wang Xing, traveled to Saudi Arabia to meet with ministers and royal family members, assessing the country’s potential for a pilot program. After over a year of planning, the app launched this September.

While Keeta’s marketing strategy has been understated, focusing on tech integration with robots, drones, and smart delivery systems, the response in the region has been anything but quiet.

Middle Eastern users have expressed anticipation for Keeta’s arrival. One influencer posted a short video declaring that “the world’s largest delivery app has come to Saudi Arabia, handling 80 million daily orders in China—far more than all other apps combined here.” Many commenters shared his enthusiasm, predicting that Keeta could disrupt the local market.

Some users, frustrated by unreliable service from other platforms, voiced hope. “I waited 30 minutes on HungerStation only to be told the restaurant was closed! When is Keeta going to save us from these chaotic apps?” one user asked.

However, not all reactions were positive. Rather than driving down prices, Keeta’s arrival seems to have coincided with price increases across the market. “After China’s delivery apps entered the market, all the food prices went up,” one user complained.

Others speculated whether the price hikes were due to increased government fees or competition among the platforms. “Have sandwich prices gone up by SAR 5 (USD 1.3) because of fees, or are these apps raising prices?” another user questioned.

While the reasons for these price increases remain unclear, one thing is certain: Meituan’s arrival will intensify competition in Saudi Arabia’s online food delivery space, where Delivery Hero’s HungerStation and local platform Jahez currently lead the market. According to JPMorgan analyst Marcus Diebel, Keeta’s entry underscores the fierce competition in the market, as well-funded newcomers like Meituan face challenges in carving out market share.

Saudi Arabia’s online food delivery market is expected to reach USD 11.74 billion this year, with an annual growth rate of 5.2%. Statista predicts the market will hit USD 15.13 billion by 2029. Whether Keeta can disrupt the dominance of HungerStation and Jahez and establish its own foothold remains to be seen.

This article was adapted based on a feature originally written by Kiko and published on ePanda Chuhai (WeChat ID: ePandaMENA). KrASIA is authorized to translate, adapt, and publish its contents.

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