LINE

Text:AAAPrint
Economy

Meituan Dianping to focus on food as losses widened in Q4 2018

1
2019-03-12 15:32:58CGTN Editor : Gu Liping ECNS App Download

Data released by Chinese services platform Meituan Dianping on Monday showed losses widen by 144 percent to more than 10 million yuan per day, despite an 89 percent uptick in revenue in the last three months of 2018.

Meituan Dianping, which provides services ranging from food delivery and transport to theater tickets and restaurant reviews, saw its operating loss increase to 3.7 billion yuan (551 million U.S. dollars) in the final quarter, with significant losses made by its bike-sharing business Mobike.

Net losses hit 3.4 billion yuan in the final quarter, even though year-on-year revenue almost doubled to 19.8 billion yuan (2.95 billion U.S. dollars).

On Tuesday morning, shares in Meituan Dianping fell by almost 9.70 percent, as investors reacted negatively to the losses.

An earnings call on Monday saw founder Wang Xing confirm that Meituan will focus on its food business in 2019, scaling down its bike-sharing and ride-hailing services.

That will see Meituan put an end to Mobike's Asia Pacific services, with TechCrunch reporting last week that staff in Singapore, Malaysia, Thailand, India and Australia have all been let go.

A 2.7 billion U.S. dollar deal for Mobike last April came after years of overseas expansion and overspending put an end to bike-sharing rival ofo.

Despite scaling back on its operations overseas, Mobike continued to make big losses after Meituan's takeover, bleeding 4.6 billion yuan (685 million U.S. dollars) since the takeover – more than triple its revenue.

The company announced last September that it would not look to expand its ride-hailing services, after safety concerns with Didi Chuxing.

Tencent-backed Meituan Dianping raised 4.2 billion U.S. dollars in an initial public offeringin Hong Kong last September, making it the biggest tech IPO in around four years.

MorePhoto

Most popular in 24h

MoreTop news

MoreVideo

News
Politics
Business
Society
Culture
Military
Sci-tech
Entertainment
Sports
Odd
Features
Biz
Economy
Travel
Travel News
Travel Types
Events
Food
Hotel
Bar & Club
Architecture
Gallery
Photo
CNS Photo
Video
Video
Learning Chinese
Learn About China
Social Chinese
Business Chinese
Buzz Words
Bilingual
Resources
ECNS Wire
Special Coverage
Infographics
Voices
LINE
Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2019 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.