China’s biggest food delivery app, Meituan Dianping, said sales had bounced back in May after suffering a near 13% drop and widening losses as the coronavirus crisis hit its first-quarter results, reported the Financial Times.
But the company said food delivery orders had bounced back to 90% of their pre-pandemic level by mid May, while its group-buying business was back to 80% and hotel booking exceeded 70%. Ahead of the results, Meituan’s share price was up 6% in Hong Kong.
Wang Xing, Meituan’s chief executive, said there had been a “dramatic drop in our food delivery volume” from the end of January to late February, but the company still posted a better set of quarterly results than analysts expected.
Total sales fell 12.6% from a year earlier to RB 16.8 billion ($2.3 billion). Its group-buying and travel booking business shrank 31%. Travel is Meituan’s most lucrative segment. The company reported a RMB 1.6 billion loss, widening from a RMB 1.4 billion loss a year earlier.