Before Uber became the poster child for public investors’ aversion to money-losing tech companies, Chinese on-demand services giant Meituan went through a similar experience. But it figured out how to win over investors.
In the four months after its September 2018 IPO, Meituan stock fell 40% as investors balked at mounting losses from its mix of food delivery, travel booking and ride-hailing services. But since the beginning of this year, the stock has more than doubled, lifting its market capitalization to more than $70 billion, a turnaround that holds some lessons for Uber.
