Economic Observer reporter Ren Xiaoning

On February 5th, Meituan (03690. HK) announced on the Hong Kong Stock Exchange that it will complete the acquisition of 100% equity of Dingdong Maicai (DDL. NYSE)'s China business for an initial consideration of approximately $717 million.

Dingdong Maicai's overseas business is not within the scope of this transaction and will be divested before delivery. During the transition period of the transaction, Dingdong Maicai will continue to operate according to the pre transaction model.

On the day of the announcement, Liang Changlin, the founder of Dingdong Maicai, sent a letter to all employees. In the letter, Liang Changlin reviewed the journey of Dingdong Maicai and why he chose Meituan, and promised that "Dingdong Maicai's business and team will remain stable, and employees will still have a very stable development platform".

According to the acquisition announcement, if the delivery cannot be completed within 12 months (which can be postponed with mutual agreement), the share transfer agreement may be terminated. If the delivery is not completed due to reasons attributable to Meituan, Meituan shall pay a termination fee of $150 million. If due to reasons caused by Dingdong Maicai or failure to cooperate with regulatory declaration, Dingdong Maicai shall pay a termination fee of 75 million US dollars. If the transaction fails to obtain approval from antitrust review or several other regulatory reviews, Meituan shall pay a termination fee of $75 million.

E-commerce analyst and founder of Dolphin Think Tank, Li Chengdong, believes that currently giants such as Meituan, Alibaba, and JD.com are investing in instant retail. Under the war, the value of small platforms has weakened, and Dingdong Maicai has to "hold its thigh". For Meituan, Dingdong Maicai has 1000 front warehouses, which can complement Xiaoxiang Supermarket.

At present, Dingdong Maicai is in a profitable state, with a revenue of 6.66 billion yuan and a net profit of 80 million yuan in the third quarter of 2025.

In 2017, Liang Changlin founded Dingdong Maicai in Shanghai, adhering to the front warehouse model and delivering fresh products in as fast as 29 minutes; Since 2020, benefiting from the surge in immediate demand during the pandemic, Dingdong Maicai has rapidly expanded to nearly 30 cities across the country and was launched in 2021.

Over the past four years since its listing, Dingdong Maicai has reached a market value of approximately 9.027 billion US dollars, with a current market value of 694 million US dollars, a decrease of 92.2% from its historical peak.

From 2022 to 2024, the instant retail industry will cool down, Missfresh will go bankrupt, and Dingdong Maicai will withdraw on a large scale from non core cities such as Chengdu, Chongqing, Guangzhou, and Shenzhen, returning to its core base in Jiangsu, Zhejiang, and Shanghai. This is also a weak area for Meituan.

With Meituan's acquisition of Dingdong Maicai, the Chinese fresh instant retail market will form a three legged competition pattern: Meituan's Xiaoxiang Supermarket and Dingdong Maicai will further expand their market share; Alibaba has Hema (store warehouse integration) and Ele.me under its umbrella, while JD.com has JD Express and Qixian Supermarket.