Hong Kong-listed Chinese food delivery giant Meituan announced on Thursday its plan to acquire the entire mainland China business of Dingdong, the New York-listed Chinese fresh grocery e-commerce company, for up to $717 million.
In a February 5 stock exchange filing, Meituan disclosed its signing of the share transfer agreement with Dingdong for 100% of its mainland Chinese operations for an initial consideration of $717 million, which would make the business an indirect wholly-owned subsidiary of Meituan.
The acquisition plan is still subject to necessary regulatory approvals, including passing the Anti-Monopoly Review by China’s national market regulatory authorities, as well as shareholder approvals and the completion of a divestiture of Dingdong’s overseas business, according to the filing.
“We firmly believe that through the deep integration of the strengths of both companies, we will jointly build a more resilient fresh food infrastructure and deliver higher-quality services to consumers,” said Liang Changlin, Dingdong’s founder, director, and CEO, in a statement.
“At present, the transaction is progressing steadily in accordance with relevant legal and regulatory procedures and closing conditions,” said Dingdong’s CFO and director Wang Song. “From a financial and strategic investment perspective, the pricing rationale of this transaction fully demonstrates the capital markets’ high recognition of Dingdong’s supply chain moat, user stickiness, and brand core values.”
At market close on February 5, Dingdong’s market cap stood at $694 million.
The acquisition comes after a year of heated rivalry in China’s food delivery market, where billions of subsidies and price wars among incumbents Meituan and Alibaba Group’s Ele.me and newcomer JD.com have triggered significant stock price volatility.
“The transaction is in line with the company’s long-term development plan in the grocery retail sector,” Meituan explained in the filing.
“Dingdong has best-in-class supply chain capabilities, with a high direct sourcing rate from fresh produce origins, a rich portfolio of private-label products and a high repurchase rate, and is well received by consumers. The transaction will help fully leverage the respective strengths of both parties in product capabilities, technology and operations, providing consumers with better consumption and delivery experiences,” said Meituan.
Founded in 2017 by Liang in Shanghai, Dingdong provides users and households with fresh groceries, prepared food, and other food products through a self-operated, community-based network of fulfilment warehouses across China, featuring an express delivery service that it says is as fast as just under 30 minutes.
After booking a net loss (after tax) of 38.9 million yuan in 2023, the company generated a net profit of nearly 372.8 million yuan in 2025. Its net profit for the first nine months of 2025 crossed 215.7 million yuan ($31.1 million), according to Meituan’s filing.
As of September 2025, Dingdong operated over 1,000 front warehouses in China, with more than 7 million monthly transacting users.
Dingdong went public on the New York Stock Exchange (NYSE) in June 2021, raising $87 million in the initial public offering (IPO). Prior to that, it completed multiple private markets financing from investors such as SoftBank Vision Fund, Capital Today, DST Global, and HSG, previously known as Sequoia China.
