BEIJING/SHANGHAI (Reuters) – Chinese language tech large Meituan plans to restructure its ride-hailing service and reduce the variety of staff it has engaged on the platform, in accordance to an inner letter seen by Reuters on Monday and two sources.
The corporate intends to reduce the quantity of assets devoted to the service and a portion of the service’s staff shall be transferred to different enterprise strains, in accordance to the letter despatched by the corporate’s CEO Wang Xing.
Meituan declined to remark. The corporate’s essential app is understood in China as a ‘superapp’ which has companies from meals supply to restaurant bookings. Native media shops comparable to 36Kr first reported the letter earlier on Monday.
The transfer marks the most recent flip in method by Meituan to its ride-hailing service, which it relaunched as a standalone app in 2021 after regulators barred the Chinese language market’s dominant participant Didi International from registering new customers and eliminated its apps from app shops amid a cybersecurity investigation.
Meituan first launched the Meituan Dache app in 2017 however eliminated it from app shops two years later citing losses，native media reported on the time. However over the entire interval, it has provided the ride-hailing service among the many suite of companies on its essential app.
Didi’s Chinese language service was allowed to resume new person registrations in January after it was dealt a $1.2 billion fantastic over data-security breaches.
Meituan’s determination additionally comes as a lot of its tech friends are evaluating non-core companies and chopping prices because the economic system slows. Meituan was badly hit by COVID-19 curbs final 12 months however it swung again to revenue final quarter because it put the brakes on heavy funding on its new initiatives.
(Reporting by Jenny Wang, Kevin Huang and Brenda Goh; Enhancing by Chizu Nomiyama)