Grocery giant Dingdong Maicai tests Saudi waters with tailored delivery model

Dingdong Maicai is venturing beyond China’s borders, and its first stop is Saudi Arabia, according to reports by Sina. The grocery delivery platform is said to have launched its overseas expansion with a model designed to cater to the Middle Eastern market. The focus? Prepackaged dishes tailored to local tastes, alongside fresh produce, refrigerated goods, and general merchandise. This move follows a high-level management meeting held in Saudi Arabia earlier this year.

Efforts to build a local presence are already underway. Job listings on recruitment platforms reveal Dingdong is hiring for roles in product management, operations, customer service, procurement, and government relations—many based in Riyadh. Candidates fluent in both English and Arabic are prioritized. In addition, the company has expanded its 2025 campus recruitment program to include international business management positions, underscoring its intent to groom leaders for its global operations.

However, a November 14 report by Beijing Business Today cited a Dingdong representative clarifying that these efforts remain in the exploratory stage, with no further details disclosed.

Dingdong’s supply chain is already global, with direct sourcing from Chile, Australia, New Zealand, Thailand, and Malaysia, ensuring access to a broad range of quality products.

For businesses aiming to penetrate the Middle Eastern market, Saudi Arabia stands out as an attractive entry point. Meituan, another Chinese heavyweight, chose Saudi Arabia as the first overseas market for its food delivery service Keeta. Meanwhile, coffee brands such as Cotti Coffee and Nowwa Coffee have also set up operations in the country.

The allure is clear: Saudi Arabia is the largest economy in the region, with a young, tech-savvy population, high per capita GDP, and a strong appetite for imported food. Internet penetration is high, and consumer spending power is robust—conditions that create fertile ground for new market entrants.

Dingdong’s recent financials add credibility to its expansion plan. The company has achieved non-GAAP profitability for eight straight quarters and GAAP profitability for the last three. In Q3 2024, it reported revenue of RMB 6.54 billion (USD 915.6 million), up 27.2% year-on-year. Non-GAAP net profit surged 942% to RMB 162 million (USD 22.7 million), with a net margin increase to 2.5%. Gross merchandise volume (GMV) for the quarter stood at RMB 7.27 billion (USD 1 billion).

Saudi Arabia’s food delivery market, however, is fiercely competitive amid rapid growth. According to Statista, the market is projected to generate USD 11.7 billion in revenue this year, with a penetration rate of 43.4% and around 16.3 million users. By 2029, the market is expected to add 2.9 million users, with revenue projected to grow at a compound annual growth rate (CAGR) of 5.2%, reaching USD 15.1 billion.

The market is expected to add another 2.9 million users by 2029, at a projected compound annual growth rate (CAGR) of 5.2% for revenue between 2024–2029.