MEITUAN plummets 6%, the number of riders paying social insurance may exceed one million
Technology stocks fell across the board: the Hang Seng TECH Index dropped over 3%, with Hua Hong Semiconductor, Kuaishou, MEITUAN, and others leading the decline
MEITUAN fell more than 6.5% in early trading, with Alibaba and JD.com following suit.
The main reason for MEITUAN's sharp decline is the announcement made yesterday regarding the payment of social insurance for delivery riders, which is expected to increase MEITUAN's expenses.
What about MEITUAN's expenses?
There are approximately 819,500 riders who meet the "full-time" criteria.
In September 2024, the MEITUAN Research Institute released a report on rider income. The report indicated that among the 7.45 million riders with order income, 11% of them, or about 819,500, had more than 260 days of order-taking throughout the year.
The current number of riders meeting the "stable part-time" criteria is unpredictable.
The number of MEITUAN riders eligible for social insurance may exceed one million.
Based on a simple calculation that MEITUAN pays 10,000 yuan in social insurance per rider annually, MEITUAN may incur additional expenses of over 10 billion yuan in a year, which is a significant amount for MEITUAN.
In other Hong Kong stock news, the Hong Kong stock market retreated today, with the Hang Seng Index falling over 2% and the Hang Seng TECH Index dropping over 3%, as technology stocks fell across the board. Hua Hong Semiconductor, Kuaishou, and MEITUAN led the decline.