Meituan-Dianping, China’s biggest on-demand food delivery mammoth, had a triumphal debut on the Hong Kong bourse. Its shares ended its first trading day up 5%, with a market cap of over US$50 billion.
“James Tan, the Managing Partner of Quest Ventures, sees profitability concerns as a valid part of the whims when a private company transits to become a public entity. Having seen through the Nasdaq listing of the then 55tuan – a startup he founded – despite the market onslaught and delays, he believes that Meituan, which has a good track record of growth thus far, will be able to weather the current storm.
Furthermore, China’s food delivery market is huge. Just like the case in the global food delivery space, it is likely that the market is sufficient to accommodate at least two dominant players.”