(Yicai Global) Nov. 14 -- Shanghai-based Yum China Holdings Inc [NYSE:YUMC] aims to establish its own food delivery company, and has embarked on related recruitment work, Beijing Business Today cited an industry insider as saying.
Yum China refused to respond to comments on the speculation, though a manager at the firm's delivery affiliate Daojia did say plans for such a project was underway.
China's takeout market is dominated by Meituan, run by Shanghai Sankuai Online Technology Co., and Ele.Me operated by Shanghai Rajax Information Technology Co. and backed by e-commerce giant Alibaba Group Holding Ltd. [NYSE:BABA]. The move into food delivery business reflects an increasing number of catering businesses that covet this market and would like to gain a stronger presence, insiders say.
Yum China Holdings Inc. is one of the largest catering enterprises in China, owning multiple well-known brands such as KFC and Pizza Hut. The company now boasts over 7,700 stores in China. Yum's takeout business accounted for 14 percent of its overall sales in the third quarter, up by 2 percent over that of the first quarter.