(Yicai Global) May 22 -- KeeTa, a food delivery service launched in Hong Kong by Chinese online services platform Meituan, started operating today, marking the first step in the company’s offshore expansion.

KeeTa will use a step-by-step expansion strategy in Hong Kong, starting with the densely populated Mong Kok and Tai Kok Tsui areas and then gradually moving to region-wide coverage within this year, Yicai Global learned from Meituan.

KeeTa will offer promotions worth HKD1 billion (USD127.9 million), including a HKD300 (USD38.40) voucher for each newly registered user, Beijing-based Meituan said.

Meituan founder and Chief Executive Wang Xing announced plans to move into overseas markets at the firm’s earnings results meeting in March, with Hong Kong chosen as the springboard based on cultural, language, and infrastructure considerations.

As Yicai Global previously reported, Meituan started recruiting delivery workers in Hong Kong in February, saying that those who deliver 500 orders a month can earn a monthly income of as much HKD35,000 (USD4,475), alongside basic service fees and bonuses.

However, the expansion may increase the financial burden on Meituan. According to its annual report for 2022, the firm had a net loss of CNY6.7 billion (USD953 million), though that was 72 percent narrower than in 2021. Revenue jumped 23 percent to CNY220 billion (USD31.3 billion) from a year earlier.

Shares in Meituan [HKG: 3690] closed up 3.1 percent today at HKD132.60 (USD17), but they are down 24 percent so far this year.

Editor: Tom Litting