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Meituan Dianping profit plummets amid coronavirus

(ATF) China’s online food delivery giant Meituan Dianping reported a 1.7 billion yuan ($238 million) decline in first-quarter operating revenue.

Turnover in the first three months fell 12.6% year-on-year to 16.8bn yuan due to the impact of the novel coronavirus, according to the Beijing-based company’s unaudited consolidated results.

Meituan Dianping’s major businesses – food delivery and in-store, hotel and travel food sales – were severely affected by the epidemic, the report said.

The daily average number of food-delivery transactions dropped 18.2% to 15.1 million, while revenue in the segment decreased 11.4% to 9.5bn yuan during the period.

In-store, hotel and travel revenue decreased 31% to 3.1bn yuan.

The e-commerce company reported growth in its new initiatives, including its grocery retail business, of 4.9% to 4.2bn yuan.

CFO Chen Shaohui said the company’s focus this year will be to help the platform’s merchants resume their business gradually. 

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