Superapp for local services As ride-hailing market leader Didi faces a cybersecurity assessment, Meituan is reducing mobile power bank rentals while reintroducing a ride-hailing app. Heytea, a tea drink franchise, has raised $500 million in Series D funding. Amazon is stepping up its anti-Chinese seller campaign.
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Meituan makes changes to its offerings.
Chinese media reported on Wednesday that Meituan planned to reduce the size of its mobile power bank leasing service. According to Donews, Meituan is selling its rental service to local operators in 33 Chinese cities. The majority of these cities, like as Jinan, Baoding, and Changsha, are second-tier. Gao Cheng, the head of Meituan’s rental service section, just resigned. Many of the division’s business development workers have moved to Meituan Youxuan, a community grocery division. [Donews] [Donews] [Donews] [Donews] [Donews] [ On Friday, Meituan reopened a solo ride-hailing service, three years after withdrawing Meituan Dache to save money on expansion. The debut coincided with a cybersecurity review that barred Didi’s applications from accepting new users. During the app’s pause, Meituan’s ride-hailing service continued to operate as a mini-program within the Meituan super app. [SCMP] Heytea has raised half a billion dollars.
Store that sells modern tea drinks Heytea closed a $500 million Series D financing round. Sequoia Capital China, Hillhouse Capital, Tencent Investment, and Temasek are among the investors. Heytea, which was founded in 2012 and now has roughly 695 outlets across China, popularized “cheese teas.” The brand is well-liked among young Chinese city dwellers. [Ebrun] [Ebrun] [Ebrun] [Ebrun] [Ebru
Amazon tightens its grip on Chinese vendors.
For allegedly breaking Amazon’s policies without specifying, Amazon terminated 340 online storefronts operated by one of the major Chinese sellers on the marketplace. Electronic gadgets, toys, and outdoor equipment are among the products sold by Shenzhen Youkeshu Technology Co. Payments owing to Amazon have been halted in the amount of $20 million. According to a recent filing by the retailer’s Shenzhen-listed parent Tiza Information Industry Corp, the prohibition could lower Youkeshu’s first-half sales by 40% to 60%. Amazon banned three electronics brands owned by Sunvalley Group, a Shenzhen-based electronics manufacturer, in June for bribing positive reviews with gifts. [SCMP]
Following the rescue, Suning’s chairman resigns.
On Monday, Suning’s billionaire founder, Zhang Jindong, resigned as chairman of the Chinese retail behemoth. When the corporation sold a roughly 17 percent interest to a government-led consortium, Zhang lost control. On July 5, the ailing retailer received a $1.36 billion bailout offer from a group of investors led by the Nanjing and Jiangsu governments’ state asset management committees. Alibaba, as well as Chinese electronics companies Midea Group, Haier Group, Xiaomi, and TCL Technology Group, have joined the funding consortium. [Bloomberg]
The reporting was assisted by Louis Hinnant.
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