Can HK food-delivery app Keeta's cash-burning blitz sustain its rapid growth?

In early March, in a surprising move, the well-known food-delivery app Deliveroo announced its exit from Hong Kong. The company struggled to compete on pricing against newcomer Keeta, which since launching in Hong Kong in May 2023, had swiftly captured 44% of the city’s food delivery market, based on March 2024 figures. With Deliveroo’s exit, this figure could be much higher now.

Backed by significant investment from its parent company, the Chinese ecommerce giant Meituan, Keeta adopted a growth-before-profit strategy. Running what has been called a ‘cash-burning’ campaign, Keeta used aggressive discounting to win customers, offering meal discounts that competitors like Deliveroo could not match.

Keeta also targeted delivery workers by offering higher wages, drawing many away from rival platforms. This shift put additional pressure on businesses partnered with Deliveroo and others.

The company’s rapid expansion relied heavily on steep discounts and close collaboration with local restaurants on pricing. However, some reports claim Keeta pressured restaurants into signing exclusivity agreements by threatening to raise commission fees on takeout orders from 25% to 28% if they refused exclusivity contracts.

While Keeta’s aggressive pricing helped fuel rapid growth, questions remain about the long-term sustainability of this investment-backed approach. Recently, Keeta began cutting driver wages from about HK$40 per order to as low as HK$20, leading critics to suggest the company is now reducing labour costs after exhausting Meituan’s funding to try to turn a profit. This shift signals that its cash-burning strategy may have delivered short-term gains but could face challenges ahead.

The big question: Can Keeta sustain its aggressive momentum in Hong Kong’s food delivery market, or will its growth-before-profit model lead to its downfall? Campaign Asia-Pacific turned to three brand experts to assess Keeta’s future.

 

David Ko

Managing director, RFI Asia, Ruder Finn

 

Keeta stormed Hong Kong's food delivery market by aggressively slashing prices and offering generous subsidies, powered by Meituan's deep pockets. A laser-focused rollout, starting in busy areas like Mong Kok has amplified their impact. Smart, relatable marketing campaigns boosted brand visibility significantly, making Keeta the go-to choice for price-sensitive Hong Kongers.

 

Keeta's 'burn-cash-to-win' strategy has grabbed attention but raises red flags for long-term sustainability. Deep discounts and heavy subsidies quickly win market share but will ulitmately strain even Meituan’s vast resources. Pushing restaurants into exclusivity agreements with higher commissions could backfire—damaging partnerships and attracting regulatory scrutiny. To stay viable, Keeta must transition carefully from aggressive growth to balanced profitability.

 

Keeta's future looks promising if it pivots smartly from aggressive expansion to sustainable innovation. Rolling out drone delivery and tech advancements can help differentiate beyond price wars. Improving courier conditions, rebuilding trust with restaurants, and staying regulator-friendly will be critical. By localising further and balancing growth with responsibility, Keeta can cement its dominance long-term in Hong Kong’s competitive food delivery scene.

 

Virginia Ngai

Associate partner, Prophet

 

Keeta’s rapid rise showcases how a challenger brand can disrupt a saturated market through precise execution and strong backing. Leveraging Meituan’s operational expertise, Keeta swiftly expanded citywide from Mong Kok within five months and introduced the industry-first 'on-time promise' guarantee, setting a new reliability standard. By offering generous subsidies and discounts, it attracted trial users and ingrained habits among Hong Kong’s price-sensitive, dense market. Like Pinduoduo’s Temu, Keeta focused on high-quality, customer-centric services tailored to local preferences in Hong Kong and beyond.

 

Central to its success was marketing that targeted the city’s large single-diner population with value-for-money set menus and relatable campaigns using local slang like “食好西” (eat good stuff) and “老 Best” (the best). However, subsidy-led growth isn’t sustainable alone; Keeta must now shift from discount-driven transactions to emotional loyalty through differentiated experiences, reliability, and trust. Heavy-handed tactics risk harming its core value of broad, quality selection, so long-term success relies on collaborative partnerships that support restaurant profitability.

 

At a strategic inflection point, Keeta must move beyond price wars to ecosystem leadership by building brand equity, loyalty programmes, and operational excellence. Defining its purpose—whether as a lifestyle curator, a go-to for tourists, or health-conscious partner—and strengthening its ecosystem with tools like data analytics and dynamic pricing will be vital. Investing in personalised customer experiences, UI/UX improvements, and service excellence will set Keeta apart as experience becomes the new battleground. Diversifying into groceries, quick commerce, and exclusive collaborations with a hyperlocal approach will help Keeta become Hong Kong’s first-choice platform, transitioning from price-led disruption to an experience-driven ecosystem that will redefine food delivery in the city.

 

Rajiv Jayaraj

Principal consultant at R3, part of MediaSense

 

Keeta entered the Hong Kong market with an aggressive yet calculated strategy, combining generous subsidies, catchy colloquial ads, and rapid restaurant onboarding. Their smart, hyperlocal marketing didn’t just grab attention—it earned trust, positioning Keeta as both an affordable alternative and an authentically Hong Kong brand. The name 'Keeta', a play on the Cantonese pronunciation of 'cheetah', reflects speed and agility, qualities that resonate with local lifestyles. What started as a price war quickly evolved into a personality contest, one that Keeta dominated through tightly coordinated, hyperlocal media and marketing.

 

Now, Keeta needs a distinct value proposition that goes beyond pricing to focus on consumer experience and partnerships. The real challenge is turning short-term buzz into long-term loyalty. The discount strategy can’t last forever. Keeta’s deep discounts hooked customers quickly, but loyalty built on subsidies and promos rarely lasts. When the deals slow down, as they inevitably must, customers may gradually disappear in search of the next bargain.

 

Keeta has the foundation to become more than just a cheap delivery app. Continuing to leverage local charm and playful marketing while strengthening restaurant partnerships and ensuring consistent service will be crucial. Lasting brands in delivery differentiate themselves through genuine care—not only for customers but for the broader community. By building a strong ecosystem of trusted partnerships, excellent service, and meaningful community impact, Keeta can solidify its position in Hong Kong and prepare to expand into new verticals and markets.