Thursday , October 28 2021

Meituan, the – & # 39; & # 39 all application, China, count & # 39; far from sharing the bike and walking & # 39; forward – TechCrunch



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a major player in the race for the transport of & # 39; Chinese people are losing steam. Meituan Dianping, the platform encompasses b & # 39; support broadcasting for local services, continue to put the brakes on the crossings and boarding, said the company on its profits on the Thursday.

The firm & # 39; eight years is best known for competition & # 39; Ele.me of & # 39; Alibaba in food supplies – segment constituting the majority of its sales and booking of hotels, but is aggressively frustration at & # 39; several fronts such as transportation.

F & # 39; April, Meituan came in wheel & # 39; sharing & # 39; wheel having crowned the best player Mobike for $ 2.7 billion to face the Ono supported by Alibaba. Over the past few years, Mobike and OFO were burning through & # 39; & # 39 huge sums; investors' money in an effort to win users from subsidized rides, but both showed signs of & # 39; softening their position recently

Mobike is reducing its fleet to "avoid oversupply 'since the division of the bicycle market does not work, the chief financial officer & # 39; Meituan Chen Shaohui said during the earnings call. OFO also decreased by closing most of its international operations.

Meanwhile, Meituan said m & # 39; has no plan to expand the cars that go beyond piloting two cities – Shanghai and Nanjing – after entering the field to take Didi Chuxing f & # 39; last December. The update is consistent with & # 39; As the company announced in its prospectus before the initial bid & # 39; $ 4.2 billion & # 39; & # successful in 39; & # 39 in Hong Kong, in September.

Setting x & # 39; is probably related to changing dynamics in the common car country. After two murders & # 39; passengers Didi, the transport platform supported by Softbank taken in & # 39; charge of the China Uber in 2016, the Chinese regulators launched with the & # 39 requirements; tighter checking for drivers in all applications & # 39; ride. The mandate insert drivers numbers, and make it harder to hire rides on Didi and its competitors.

During the third quarter ended 30 & # 39; in September, asked Meituan increase & # 39; 97.2 percent of income to 19.1 billion yuan, or $ 2.75 billion, after strong growth in transactions & # 39; & # 39 delivery; food. The investments in brand & # 39; new initiatives – including trucks and sharing the wheel – took the toll by nearly tripled to 3.45 billion yuan operating loss compared to & # 39; years ago. The shares & # 39; Meituan decreased to 14 percent on Friday, the most spectacular of its listing.

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