China’s largest instant retail platform, Meituan, has completed its acquisition of Dingdong Fresh, a fresh-focused instant e-commerce operator, in a deal valued at approximately US$717 million.
In a filing to the Hong Kong Stock Exchange in early February, Meituan said it would acquire 100% of Dingdong Fresh’s China operations for an initial consideration of around US$717 million. The company said the deal would integrate both sides’ strengths in product sourcing, technology and operations, enhancing consumer experience and fulfillment efficiency.
Founded in May 2017 and headquartered in Shanghai, Dingdong Fresh built its reputation on a “front warehouse + 29-minute delivery” model, positioning itself as a premium fresh-food instant retailer. The company went public in 2021 and has since become one of the most prominent players in China’s highly competitive instant retail sector.
According to its latest financial results, Dingdong Fresh recorded gross merchandise value (GMV) of RMB 7.27 billion and revenue of RMB 6.66 billion in the third quarter of 2025, both record highs. Quarterly net profit reached RMB 133 million.
Dingdong’s core operations are concentrated in the Jiangsu–Zhejiang–Shanghai region, one of China’s most competitive retail markets. By the end of 2025, it had expanded into 25 county-level markets across Jiangsu and Zhejiang provinces. In the third quarter alone, GMV in Shanghai and the broader Jiangsu–Zhejiang region rose 24.5% and 40% year-on-year, respectively. In Shanghai, average daily orders per warehouse approached 1,700.
Notably, this region has been a relative weak spot for Meituan’s self-operated instant retail arm, Little Elephant Supermarket (小象超市). Industry observers say the acquisition could strengthen Meituan’s front-warehouse capabilities and improve its competitive position in eastern China.
Instant retail — a model in which consumers order online and receive near-immediate delivery by couriers — has emerged as one of the fastest-growing segments in China’s retail landscape. The sector includes platform operators such as Meituan and Taobao Flash Sale (formerly Ele.me), alongside self-operated players including Little Elephant Supermarket, Pupu Supermarket and Dingdong Fresh.
Self-operated instant retailers typically deploy dense networks of front warehouses and run proprietary delivery systems, allowing tight control over inventory and fulfillment. The model’s standardization, speed and cost efficiency have enabled rapid nationwide expansion while offering competitive pricing.
Both Meituan and Dingdong Fresh have also expanded into alcoholic beverages. Dingdong’s wine portfolio includes established brands such as Hardys and Montes, as well as directly sourced Australian wines.
Many of its offerings emphasize value positioning, including an Australian Barossa wine priced at RMB 68 (US$9.8), a New Zealand Marlborough Sauvignon Blanc at RMB 65, and a RMB 139 bottle from a five-star-rated winery with multiple 90+ scores. The range highlights Dingdong’s growing sophistication in wine sourcing and supply-chain integration.
In November 2025, Western Australia staged a dedicated tasting session for Dingdong Fresh at the Western Australia Fine Wine Showcase. The session brought together management, buyers, VIP customers and key opinion leaders, underscoring the company’s longer-term ambitions in the wine category.
Meituan has also expanded its alcohol delivery operations. In 2021, it launched Waima Alcohol Delivery, a vertical alcohol delivery platform covering beer, wine, baijiu and imported spirits, promising delivery within an average of 15 minutes.
Waima offers private-label products, including imported bulk wine bottled domestically and sold at RMB 99 for six bottles, as well as bottled-in-origin Bordeaux reds, Médoc Cru Bourgeois wines and Australian sweet whites.
As of 2025, Waima operates more than 800 directly managed stores nationwide, alongside over 1,000 franchised outlets. The platform has more than 30 million registered users and cumulative transaction value exceeding RMB 6 billion (US$868.4 million).
With the acquisition complete, industry watchers are assessing whether Dingdong’s expertise in wine sourcing and channel development could generate synergies with Little Elephant Supermarket and Waima. Deeper integration — particularly given Waima’s reach into lower-tier markets — could expand distribution capacity and create incremental demand for Dingdong’s wine suppliers.
