China’s Internet Companies Get Cooking (Part 1) – Meituan & Pupu

Meituan is moving up the food delivery supply chain by establishing various forms of centralized kitchens, including brand satellite stores and 'Raccoon Canteens'. This strategy aims to improve food quality, safety, and efficiency, addressing the issue of 'dark kitchens'. By controlling more of the production process, Meituan can enhance its value proposition to both consumers and restaurant partners. This move represents a significant evolution of its business model, from a pure platform to a more integrated food service provider.