Meituan, a leading Chinese technology company, has embarked on an ambitious venture into international markets with its drone delivery service. This marks the company’s first foray outside China, and contrary to expectations, the initial international operation is not in Saudi Arabia, where Meituan first initiated its food delivery services, but in Dubai, United Arab Emirates. This move underscores Meituan’s growing interest in leveraging drone technology to optimize last-mile logistics and improve delivery efficiency.
Establishing Keeta Drone in Dubai
Operating under the name “Keeta Drone,” Meituan’s drone division has evolved from an experimental project into an independent business unit. Headed by Mao Yinian, Meituan’s vice president and leader of the drone delivery segment, the division has set up a dedicated team in Dubai to ensure smooth operations. This includes scaling up its production and research teams to support the initiative.
Keeta Drone’s operational model in Dubai integrates seamlessly with existing logistics frameworks. Operating on a third-party logistics basis, Keeta Drone collaborates with restaurant chains to deliver orders in designated zones. Current service areas include locales like the Rochester Institute of Technology (RIT) campus and Dubai Digital Park (DDP). Looking ahead, there are strategic plans to expand operations into pharmaceutical deliveries by partnering with local hospitals, with a long-term vision to integrate categories such as food, groceries, and medicine comprehensively.
Favorable Policies and Strategic Planning
One critical factor that attracted Meituan to Dubai is the region’s open policy towards drone utilization. An insider revealed that after the 2023 Lunar New Year, the company began seriously considering international expansion, with the Middle East quickly becoming a top priority due to favorable drone policies. Mao Yinian’s exploratory visit to the UAE in May 2023 was instrumental, laying the groundwork for Meituan to showcase their drone technology at Dubai’s GITEX Global event in October of the same year. This high-profile exhibition was not just a display but also a pioneering step, marking the first instance of drone operations in Dubai’s densely populated urban areas.
By December 17, Keeta Drone achieved a significant milestone, obtaining a license from Dubai’s Civil Aviation Authority (DCAA) to operate commercial drone deliveries beyond visual line of sight (BVLOS). This license, the first of its kind in the region, authorized Meituan to commence commercial drone deliveries in the UAE. Insiders confirmed that Mao Yinian had visited Dubai at least three times in 2024 to push this initiative forward.
Overcoming Challenges and Expanding Use Cases
Drone delivery is a vital component of Meituan’s broader retail and technology strategy, intended as a supplementary method for last-mile logistics. Within China, Meituan’s drones have already established 53 routes across major cities like Beijing, Shenzhen, Shanghai, and Guangzhou, having completed over 400,000 orders by December 2024. Despite these impressive numbers, the average daily orders remain relatively low at 1,000, highlighting significant room for growth.
Several challenges impede the widespread adoption of drone delivery services, including restrictive policies, infrastructure deficiencies, costly delivery expenses, and limitations in last-mile delivery solutions. Overcoming these barriers requires a dual approach: reducing operational costs and expanding applicable use cases. The Middle East offers distinct opportunities for drone delivery, particularly given its extreme summer heat, which hampers traditional delivery services, and its urban layout characterized by fragmented road networks.
Strategic Advantages in the Middle East
A source highlighted Dubai’s numerous artificial islands and complex road designs, which often necessitate long detours. In contrast, drones can cover these distances directly, representing “roads in the sky.” Though Meituan initially launched food delivery operations in Saudi Arabia, Dubai was chosen as the starting point for drone operations due to its supportive policy environment. While Saudi Arabia has yet to fully embrace low-altitude drone flights, UAE’s proactive stance with initiatives like the “Dubai Program to Enable Drone Transportation” and the BVLOS Drone Delivery Program facilitated by the DCAA and the Dubai Future Foundation (DFF) created a favorable setting for drone logistics exploration.
Keeta Drone’s integration with Meituan’s larger platform reflects a holistic vision articulated by Mao Yinian, implying that wherever Keeta operates, Meituan will extend its presence. Over the next 3 to 5 years, Meituan aims for drones to manage around 10% of its delivery orders. Current observations from domestic operations suggest reliance on integrated hubs for takeoff, landing, and storage. Typically, meals are picked up from restaurants, taken to drone launch sites, and flown to community “airports,” where they are placed in automated lockers for customer pickup.
Future Prospects and Technological Advancements
Meituan, a prominent Chinese tech company, has taken a significant step into global markets by launching a drone delivery service. This initiative represents Meituan’s first venture beyond China’s borders. Interestingly, the company chose to start its international operations not in Saudi Arabia, where it had initially introduced its food delivery services, but in Dubai, United Arab Emirates. This strategic decision highlights Meituan’s increasing focus on using drone technology to enhance last-mile logistics and boost delivery efficiency. The choice of Dubai likely reflects the city’s progressive stance towards innovation and technology, making it an ideal testing ground for Meituan’s cutting-edge delivery solutions. By leveraging drones, Meituan aims to streamline the delivery process, reduce delays, and offer a more efficient service to customers. This move signals Meituan’s broader ambition to become a key player in the global logistics and delivery sector, using advanced technology to set new standards and drive future growth.
