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.