Local service superapp Meituan is cutting down on mobile power bank leasings while restoring a ride-hailing app, as ride-hailing market leader Didi deals with a cybersecurity evaluation. Tea beverage store Heytea protects $500 million in Series D. Amazon broadens a crackdown on Chinese sellers.
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Meituan changes offerings
- Meituan prepares to downsize its mobile power bank rental service, Chinese media reported on Wednesday. Donews reports that Meituan is offering its rental service in 33 Chinese cities to regional operators. Most of these cities are second-tier ones such as Jinan, Baoding, and Changsha. Gao Cheng, head of the rental service department in Meituan, just recently left the business. Many service advancement personnel from the department have actually moved to Meituan Youxuan, a community grocery department. [Donews, in Chinese]
- Meituan relaunched a standalone ride-hailing app on Friday, 3 years after eliminating Meituan Dache to cut growth expenses. The launch came as market leader Didi’s apps are prohibited from accepting brand-new users throughout a cybersecurity evaluation. Meituan’s ride-hailing service continued running as a mini-program within the Meituan incredibly app throughout the app’s hiatus. [SCMP]
Heytea raises half a billion
Modern tea beverage store Heytea finished a $500 million Series D. Investors consist of Sequoia Capital China, Hillhouse Capital, Tencent Investment, and Temasek. Founded in 2012, Heytea promoted “cheese teas” and runs about 695 shops throughout China. The brand name is popular amongst young, city Chinese customers. [Ebrun, in Chinese]
Amazon expands crackdown on Chinese sellers
Amazon closed 340 online shops run by among the biggest Chinese sellers on the platform for presumably breaching Amazon’s guidelines without requirements. Shenzhen Youkeshu Technology Co. offers a range of items, consisting of electronic devices, toys, and outside devices. Amazon froze $20 million in payments due to the seller. The restriction might minimize Youkeshu’s first-half sales by 40% to 60%, according to a current filing by the seller’s Shenzhen-noted moms and dad Tiza Information Industry Corp. Amazon prohibited in June 3 electronic devices brand names under Shenzhen-based electronic devices business Sunvalley Group for getting favorable evaluations with presents. [SCMP]
Suning chairman actions down after bailout
Zhang Jindong, the billionaire creator of Suning, resigned as chairman of the Chinese retail corporation this Monday. Zhang lost control of the business when business offered an almost 17% stake to a government-led consortium. On July 5, the distressed seller protected a $1.36 billion bailout deal from a group of financiers led by the state property management committees of the Nanjing and Jiangsu federal governments. Alibaba likewise signed up with the financing consortium, along with Chinese electronic devices makers Midea Group, Haier Group, Xiaomi, and TCL Technology Group. [Bloomberg]
Louis Hinnant added to the reporting.