Meituan has agreed to buy all outstanding shares of Dingdong Maicai for US$717 million, a deal that folds one of China’s fastest home‑delivery grocers into the country’s dominant local services platform. The purchase will make Dingdong an indirect wholly owned subsidiary of Meituan and its results will be consolidated into Meituan’s accounts once the transaction closes.
The agreement contains a liquidity carve‑out: sellers may extract up to US$280 million from the target group before closing, but must leave the business with at least US$150 million in net cash. Meituan also excluded Dingdong’s overseas operations from the transaction; those assets must be stripped out before completion. During the transition period Dingdong will continue to operate under its pre‑deal model.
Dingdong Maicai, founded in 2017, built a reputation for rapid fulfilment — marketing “as fast as 29 minutes” delivery — and listed on the New York Stock Exchange in 2021. The company reported a record quarter in Q3 2025, with revenue of RMB 6.66 billion (about US$920 million) and net profit of RMB 80 million (roughly US$11 million), marking seven consecutive GAAP‑profit quarters. As of September 2025 Dingdong had more than 7 million monthly purchasing users. Ahead of the deal, Dingdong’s market value was approximately US$694 million in pre‑market trading on February 5, 2026.
For Meituan the acquisition is both defensive and offensive. It eliminates a sizeable rival in instant fresh retail while bolting profitable hyperlocal grocery capacity onto Meituan’s existing food and delivery ecosystem. The price — roughly in line with Dingdong’s market capitalisation — suggests a deal driven by strategic fit and operational synergies rather than a high takeover premium.
The transaction underscores broader consolidation in China’s on‑demand grocery sector after years of heavy capital spending and thin margins. Players such as Alibaba’s Freshippo and other backers like Pinduoduo have pushed aggressive rollouts, leaving smaller or loss‑making operators exposed. Regulators have lately signalled support for stabilising markets, but they remain vigilant about competition and data‑security issues in platform deals.
Practically, Meituan stands to gain faster delivery density, new micro‑warehouses and a larger base of frequent grocery buyers — assets that can improve unit economics for last‑mile fulfilment across its services. The cash extraction clause and the carve‑out of overseas operations are notable deal mechanics: they steady the target’s balance sheet while allowing sellers to realise liquidity, and they avoid cross‑jurisdictional complications for Meituan.
Investors and rivals will watch integration closely. The immediate questions are whether Meituan can preserve Dingdong’s recent run of GAAP profitability while squeezing incremental cost savings, and what the consolidation means for consumer choice and pricing in the crowded fresh‑grocery market. For consumers, consolidation may bring faster network effects but could also reduce competitive pressure on fees and promotions over time.