Didi Chuxing to Lay Off Takeout Delivery Staff Amid Huge Loss

Didi Chuxing  will cease operations of its takeout delivery service in China after the  shared-mobility firm reportedly ran up a loss of CNY10.9 billion  (USD1.6 billion) for last year.

The platform’s Beijing-based operator  Xiaoju Technology will adjust its meal courier service to focus on  overseas markets starting with Mexico and Brazil, with hundreds of staff  set to be laid off or relocated, Chinese tech news outlet 36Kr reported  a company insider as saying. 

The company behind the world’s largest  ride-hailer faces pressure after a second straight year of significant  losses. Didi will adjust its non-primary business and cut around 2,000  employees or 15 percent of its total workforce, an insider reported  Chief Executive Cheng Wei as saying. 

Didi started the takeout delivery  service last March but struggled to gain a foothold in the market due to  fierce competition. The firm provides the service in five Chinese  cities but it remains unprofitable.

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