**Hong Kong**: The UK-based food delivery service Deliveroo exits the Hong Kong market, prompting Keeta to demand higher commission fees from restaurants. Concerns arise regarding the sustainability of aggressive market strategies and their impact on local businesses and delivery workers amidst rising competition and Chinese capital influence.
In March 2025, the UK-based food delivery service Deliveroo announced its exit from the Hong Kong market, prompting a swift and controversial response from Keeta, a competing delivery platform owned by Chinese retail giant Meituan. Restaurant owner Chris Chow faced an ultimatum from Keeta, demanding a rise in commission fees from 25% to 28% for takeout orders unless he signed an exclusive contract, which would preclude him from working with foodpanda, the remaining rival platform that had acquired some of Deliveroo’s assets.
Chow, who owns restaurants in Kwun Tong and Tseung Kwan O, perceived Keeta’s move as an attempt to consolidate market dominance after its rapid expansion had previously forced Deliveroo to withdraw. Speaking to the Hong Kong Free Press, Chow noted that his restaurant had seen a significant swing in delivery order volumes since Keeta entered the local market in May 2023. At that time, more than 85% of his takeout orders were being fulfilled through Keeta, while Deliveroo’s share had dwindled to single digits.
Keeta’s strategy upon its entrance involved a “growth-before-profit” approach, heavily subsidising meal prices to attract customers and enticing delivery workers with higher pay, thereby amassing a significant customer base. By March 2024, Keeta had captured 44% of the food delivery market by order volume, compared to foodpanda’s 35% and Deliveroo’s 21%, according to data from analytics firm Measurable AI.
Chow remarked on the fierce competition Keeta provided, acknowledging that it offered substantial incentives that were difficult for consumers to ignore. The company’s pricing strategies have not only benefitted customers through lower delivery prices but have also generated concerns about the long-term sustainability and health of the industry. Presenting a dichotomy between consumer advantage and industry viability, Chow stated, “Keeta’s price war might not be a good thing for the industry, but it benefited the consumer.”
In light of Deliveroo’s departure, some residents expressed nostalgic sentiments and concerns over Keeta’s aggressive expansion driven by Chinese capital. Keeta’s marketing asserted its commitment to maintaining food delivery standards in the city, but critiques emerged online over their insensitivity in the face of competitor loss.
Au Yeung Tat-chor, an assistant professor at Lingnan University, commented on consumer trends, noting that the practical spending habits of Hongkongers contributed significantly to Keeta’s market success, dismissing concerns over the origin of capital for the sake of immediate benefits.
As Keeta and foodpanda continue to engage in competitive strategies to capture the delivery workforce in the aftermath of Deliveroo’s exit, workers are reportedly facing challenges under each platform’s demands. Common concerns among delivery riders include lower wages and precarious work conditions, particularly within Keeta’s incentivised system that compels workers to compete vigorously for orders. Lumos Chiu, a delivery worker, cited a sharp decline in the earnings structure that initially offered higher pay but has since dwindled, reflecting a harsh reality for many in the industry.
Justine Lam from the Riders’ Rights Concern Group described Keeta’s conditions as the most demanding, raising alarms about the implications for both workers and market competition as new players may follow in Meituan’s aggressive footsteps.
Profitability concerns loom large, with Keeta’s rapid market strategies raising questions about the sustainability for both restaurant partnerships and delivery workers in a landscape increasingly dominated by Chinese investment and oversight. The situation encapsulates a broader trend of growth at all costs, potentially jeopardising not just the stability of local businesses but also the livelihoods of those who navigate within this fiercely competitive ecosystem.
Source: Noah Wire Services
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