Meituan Plans to Introduce Drone Deliveries in Hong Kong's Low-Altitude Economy

Meituan plans to launch drone deliveries in Hong Kong to capitalise on the city's low-altitude economy. The Hong Kong government is promoting the low-altitude economy, which will benefit tech companies like Meituan. Meituan's drone delivery services aim to reduce delivery times while leveraging Hong Kong's terrain for more efficient operations.

Meituan aims to be among the pioneers in operating a drone delivery fleet in Hong Kong, aligning with the government's efforts to enhance the low-altitude economy, as highlighted by company vice-president Mao Yinian during a presentation at the Hong Kong University of Science and Technology.

Already offering drone deliveries in major Chinese cities like Beijing, Shanghai, and Shenzhen, Meituan's drone delivery unit head, Mao, revealed plans to apply for participation in Hong Kong's low-altitude economy regulatory sandbox. The term "low-altitude economy" pertains to activities below 1,000 metres in airspace, recognised as a "strategic emerging industry" by the Chinese government in December last year. Hong Kong's Chief Executive, John Lee Ka-chiu, has committed to fostering this sector in various applications, including rescue operations, surveying, goods delivery, and passenger travel.

With Hong Kong's mountainous terrain potentially favouring drone deliveries over traditional ground transportation, Meituan anticipates a quicker delivery time of 15 to 20 minutes for meals, compared to manual deliveries, as shared by Yan Yan, the public affairs head of Meituan's drone division, in an interview with the local newspaper Hong Kong Commercial Daily. The company's initial plan is to introduce drone delivery services at Cyberport and the Hong Kong Science Park, pending government approval for the launch date.

The tech landscape in Hong Kong has been witnessing a surge in activity from mainland Chinese tech giants, such as Alibaba Group Holding, JD.com, and PDD Holdings, challenging the dominance of Western and local companies in the market. Meituan's move to introduce drone deliveries aligns with this trend, as the city becomes a focal point for Chinese e-commerce players looking to expand their services. Additionally, Baidu, a prominent Chinese web search and artificial intelligence company, is eyeing global expansion and has applied to test autonomous vehicles at the Hong Kong airport, potentially before the year concludes.

Meituan's international food delivery app, Keeta, which debuted in Hong Kong in May last year, has shown promising results by capturing over 40% of the market share in the city in the first quarter of this year. Despite facing competition from established players like Foodpanda, Keeta has excelled in terms of the number of orders, indicating a positive reception from Hong Kong consumers.

Meituan plans to launch drone deliveries in Hong Kong to tap into the city's low-altitude economy.
Hong Kong's government is fostering the low-altitude economy, creating opportunities for tech companies like Meituan.
Meituan's drone delivery services aim to reduce delivery times and leverage Hong Kong's terrain for efficient operations.

Source: SCMP