The fees for merchants to set up a store on Meituan mainly consist of a commission on sales and a possible delivery subsidy. Specifically, merchants pay about 20% of sales as a basic commission. If they choose Meituan's special delivery service, they will also receive a courier subsidy of $1 to $2 per order. It's an affordable option for small restaurants, as it can bring in 100 to 300 online orders a day, and while the commission can take up 10 to 30 percent of net profit, it still may bring as much as a 10 to 30 percent boost in net profit overall.

Meituan's profitability relies heavily on the huge volume of online orders, which compensates for the geographically limited nature of its brick-and-mortar stores and enables it to attract a broader customer base. Takeout platforms such as Meituan and HungryMall help merchants break through geographic limitations and increase sales opportunities by expanding their reach.

Additionally, Meituan has a group-buying service that allows merchants to join by paying a joining fee and a commission on sales, usually between 3,000 and 4,000 yuan and between 5 and 8 percent. Group buying is a great way to boost brand exposure, and in the early days many platforms offered free entry, which allowed merchants to get a taste of online traffic by gaining a large number of customers through high-exposure promotions. However, the fee structure may be different now, and merchants need to weigh the costs and benefits when considering whether to join.