Chinese internet giant Meituan (HKG:3690) will launch its Little Elephant Supermarket app in Saudi Arabia as the platform offering fresh grocery delivery services moves outside China, The Standard reported Tuesday.

Previously, sister food delivery app Keeta launched in Saudi Arabia three months ago, according to 36Kr.

The company did not opt for Hong Kong as a testing base since the demand is unpredictable. Experts believe that the extreme weather conditions in the Gulf mean the delivery service requirements will be much more stable, the publication said.

Data from Statista shows that although the food delivery market is larger in Saudi Arabia, since 2020, grocery delivery is outpacing its food delivery rival, the Standard said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)