The main player in the race for transporting the Chinese people is the loss of steam. Meituan Dianping, the Tencent-supported local service platform, continues to put bicycle and ride-on brakes in the brakes, the company said on Thursday.
The eighty-year-old firm is known after the competition with Eleib owned by Alibaba in food supplies – the segment that makes up most of the sales – and a hotel reservation, but is aggressively branched on various fronts like transportation.
In April, Meituan entered the bike sharing troubles after it took over the top player Mobike for $ 2.7 billion to face the Alibaba-backed Ofo. Over the past few years, Moby and Ofo is fueling large sums of money from investors in an effort to win users from subsidized rides, but both have shown signs of softening their attitude recently
Moby is reducing its fleet to "avoid over-supply," as the motor vehicle market is redirected, said Meituan's chief financial officer, Chen Shaohui, during a call for revenue. Ofo also declined by closing many of its international operations.
Meanwhile, Meituan said there are no plans to expand the car's driving outside of its two pilot cities – Shanghai and Nanjing – after stepping into the field to take over Didi Chueking in December last year. The update is in line with what the firm announced in its prospect before a $ 4.2 billion blockbuster for a Hong Kong public offer this September.
The interruption is most likely associated with a change in the dynamics of the country's joint driving. Following two passenger assassinations of Didi, the Softbank-supported transport platform, which took over Uber China in 2016, Chinese regulators launched their strictest verification requirements for drivers in all appling applications. The mandate tightens the driver's numbers, making it harder for Didi and his competitors to drive.
During the third quarter ended Sept. 30, Meituan posted a 97.2 percent jump in revenues of 19.1 billion yuan, or $ 2.75 billion, due to the strong growth in food delivery transactions. The company's investments in new initiatives, including bike riding and sharing, took a toll because operating losses almost tripled to 3.45 billion yuan compared to a year ago. Meituan shares fell as much as 14 percent on Friday, mostly from its spectacular announcement.