Meituan announced the appointment of Wang Puzhong as the CEO of the "Core Local Commerce" division in response to intense competition in the local life sector.
On April 18th, Meituan（3690:HK）'s CEO, Wang Xing, released an internal memo disclosing the progress of the integrated organizational iteration. As per the memo, the previously integrated Meituan platform, in-store business group, home delivery business group, and basic research and development platform will merge to form the "Core Local Commerce" division, with Wang Puzhong appointed as the CEO.
In February of this year, Meituan declared that Wang Puzhong would oversee Meituan's platform, in-store and home delivery business groups, and basic research and development platform, among other core local commerce operations. The recent internal memo formally names the organizational results of the previous business integration within the company's structure and clarifies Wang Puzhong's role and identity.
According to the memo, Meituan will "no longer have separate in-store and home delivery business groups, with the departments previously under these two business groups now directly reporting to 'Core Local Commerce'."
An insider close to Meituan analyzed, "In recent years, Meituan's business has exhibited a typical diversity, including various models such as platforms and self-operated businesses. As different businesses are at different stages of development, resource allocation and management methods also vary. Therefore, further integrating and iterating the organization is advantageous in enhancing efficiency and adapting to change."
Previously analyzed by the media, the integration of core local commerce-related operations aims to combine businesses with high merchant, user, and demand overlap to collectively develop and provide the most comprehensive local consumer experience.
Currently, the local life sector where Meituan operates is undergoing significant changes, with the formidable rise of Douyin (TikTok's Chinese version). Internet companies such as Alibaba, Kuaishou, Pinduoduo, and Xiaohongshu are also accelerating their business layouts, intensifying competition for Meituan.
Apart from organizational restructuring at the company level, Meituan has also undertaken various business and personnel adjustments. In March, Meituan adjusted its in-store business, appointing Wei Wei, Vice President of Meituan, to lead the in-store catering business unit. The position of head of the takeaway fulfillment platform, previously held by Wei Wei, was taken over by Zhang Ruoyu, and recent graduate Xue Bing became the head of the takeaway business unit.
On April 11th, Meituan made adjustments to its takeaway business, dissolving the direct-operated business department and establishing the city operations business department, chain business department, and supply exploration department, with appointed leaders for each. Bringing the core team closer to the front line is conducive to enhancing flexibility and decision-making efficiency.
"Looking forward to the 'Core Local Commerce' division upholding the mission of 'helping everyone eat better and live better,' strengthening management system development, continuously upgrading organizational capabilities, solidifying technological foundations, seizing technological opportunities, deepening industry cultivation, and creating more value for customers," Wang Xing expressed in the closing remarks of the memo.
As of the time of drafting, Meituan's Hong Kong-listed shares were priced at HKD 97.7 per share, resulting in a total market capitalization of HKD 609.1 billion.