TMTPOST -- Meituan has officially launched its overseas grocery retail brand Keemart in Riyadh, Saudi Arabia, marking a key milestone in its international expansion efforts, according to multiple public reports.
Keemart, the overseas extension of Meituan's Xiaoxiang Supermarket, began operations on May 7, as observed on overseas professional social media platforms.
The Keemart Courier app, which supports its delivery service, is now available on both Google Play and Apple App Store but restricts registration to Saudi-based phone numbers and emails. Additionally, a supplier service system for Keemart has also been introduced.
Leading the Keemart initiative is Liu Wei, who previously held leadership roles at Kuailv and Meituan Youxuan's regional operations. Last August, Meituan consolidated Kuailv, Xiaoxiang Supermarket, and Youxuan into a single grocery retail division, streamlining its instant retail business.
Xiaoxiang Supermarket operates a front-warehouse model, placing small warehouses near residential areas to enable rapid sorting and delivery—leveraging Meituan's established food delivery network as a major competitive edge domestically.
Data from Redseer highlights that Meituan's food delivery brand Keeta captured a 10% share of Saudi Arabia's food delivery market within four months, ranking among the top three platforms. Keeta's app currently surpasses local competitors such as HungerStation and Jahez in download rankings.
This strong foothold has paved the way for Keemart, which can share Keeta's delivery resources and user base to reduce acquisition costs and enhance customer loyalty.
Meituan founder and CEO Wang Xing previously noted that the company's overseas expansion will be more measured than its rapid growth in China, focusing first on building food delivery traffic and infrastructure as a foundation for future services.
Wang also highlighted that although customer acquisition costs in the Middle East are higher, the frequent use of core services like food delivery can drive growth in other business areas. Meituan plans to increase investment in overseas markets in 2025 while monitoring return on investment closely.
Saudi Arabia's food and grocery delivery market is expected to reach $2.8 billion by 2028, growing at an 18.2% compound annual rate, according to Lucidity Insights. Yet, Keemart faces stiff competition.
Hunger Station, Saudi Arabia's first food delivery platform, launched its grocery retail arm H Market in 2020, covering over 37 categories with deliveries in 15-25 minutes. By June 2023, H Market had processed over 10 million orders. Jahez, another major local player, serves over 3 million users across 20 cities and has completed 20 million orders, offering services that overlap with Keemart's.
Other competitors include Lugmety, which closely mirrors Meituan's business model, and front-warehouse operators like Nana and Egypt-based Rabbit Mart. Nana, founded in 2016, operates in 14 Saudi cities, while Rabbit Mart entered the Saudi market in April, promising 15-20 minute grocery deliveries.
Mordor Intelligence reports that the Middle Eastern online grocery market is rapidly evolving, with urban saturation pushing companies to expand into second-tier cities and diversify services. The region's 50-60 million affluent Gulf population creates a challenging market requiring broad coverage across sectors and geographies.
In this highly competitive environment, Keemart's success in leveraging Keeta's momentum could be pivotal for Meituan's broader overseas ambitions beyond food delivery.