(Yicai Global) Feb. 21 -- Meituan began recruiting delivery men in Hong Kong yesterday, offering above-average salaries, as the Chinese on-demand services giant prepares to extend its success into the Special Administrative Region.

Meituan is offering a monthly salary of up to HKD35,000 (USD4,463) if the courier delivers 500 orders a month and meets several other performance targets, Yicai Global noticed. This is much higher than the average monthly salary of HKD20,000 in Hong Kong and indicates that the Beijing-based firm is prepared to invest heavily to gain a foothold in the new market.

More than 2,000 people have already subscribed to the ‘Meituan Deliverymen’ account on instant messaging app Telegram. The first recruitment advert was posted yesterday.

Applicants need to be over 18 years old, hold a valid driver’s license and insurance, have Hong Kong residency and own a phone, according to the job description. There are also delivery jobs that are within walking distance and are referred to as ‘infantry.’ These are open to local residents who are 16 years or older.

Meituan is also headhunting for business development personnel and client managers, according to job recruitment posts seen by Yicai Global. Meituan had not responded to queries about its hiring drive as of press time.

Meituan will likely have to engage in a price war, offer user subsidies and bear the cost of high wages in order to pry market share from local competitors Deliveroo and Foodpanda, an insider told Yicai Global.

There are challenges as well as opportunities facing Meituan in the Hong Kong market, another local insider told Yicai Global.

On one hand, high labor costs result in higher delivery fees and slower delivery times. Packaging is also often inadequate and there are not enough stores cooperating with platforms, resulting in an overall poor delivery experience. This will almost certainly provide opportunities for newcomers like Meituan.

On the other hand, however, unlike people living on the mainland who are used to placing orders on their phones, Hong Kong residents don’t find takeout services convenient, he added. Hong Kong has a dense distribution of restaurants and people like to dine out in restaurants where the food is fresh and cheap, posing a challenge for delivery companies.

However, if takeouts are subsidized and the meals are cheaper, people in Hong Kong could be persuaded to convert to the delivery model, some consumers said.

Editors: Tang Shihua, Kim Taylor