(Yicai) Oct. 10 -- Meituan has launched its overseas food delivery platform KeeTa in Riyadh, with the Chinese on-demand services giant offering free deliveries and other discounts to attract local customers.

The launch of KeeTa in the capital of Saudi Arabia yesterday marked its entry into a third offshore market after going live in Hong Kong in May last year and the Saudi city of Al Khaji last month. Over 44 percent of orders in Hong Kong were made on KeeTa in March, making it the city's top takeaway platform ahead of Foodpanda and Deliveroo.

Meituan began recruiting for its takeout business in Riyadh in April and sent a dozen employees to the Middle East to develop the local market, National Business Daily reported on July 19.

Meituan's overseas expansion is still in its early stage, with the firm continuing to evaluate market opportunities in different regions, the company said at a second-quarter earnings conference call. The offshore business is an integral part of the long-term development strategy, it added.

Beijing-based Meituan picked Saudi Arabia as its second offshore destination because there are still many opportunities in the local food delivery market, according to the company.

Saudi Arabia's food delivery aggregation platform rose 14 percent to USD4.3 billion last year from the previous one, according to the research report by GF Securities. It will likely expand to USD9.9 billion by 2030, with a compound growth rate of 12 percent.

In addition, the unit price of takeaway customers in the Saudi market is relatively high, users have a high degree of acceptance of payment for delivery fees, which can cover the cost of each order, and the average profit model per order is advantageous.

However, Meituan faces fierce competition in Saudi Arabia from local brands, including Talabat, Jahez, and HungerStation, as well as international platforms Deliveroo, Uber Eats, and Delivery Hero. According to data from GF Securities, Jahez and HungerStation hold 70 percent of the market.

Editor: Martin Kadiev