Chinese commercial inquiry platform Tianyancha indicated on Tuesday that Shanghai Yibaimi Network Technology Co., Ltd., the operator of fresh food e-commerce platform Dingdong Maicai, changed its business registration information on January 24. Its registered capital increased from 3.5 billion yuan ($553 million) to 8 billion yuan ($1.26 billion), up 128.6%. In addition, the company’s business scope includes new areas such as bicycle-sharing services, business management consulting and leisure and sightseeing activities.
Dingdong Maicai was founded in May 2017. The main merchandise categories available on the platform include vegetables, bean products, fruits, meat, poultry and eggs, aquatic products, seafood, rice, flour, grain and oil.
Its services currently cover Shanghai, Beijing, Shenzhen, Hangzhou, Suzhou and other cities in China. The firm’s official website shows that in 2020, its annual revenue exceeded 14 billion yuan, and more than 850 warehouses have been built, with a daily order volume of 850,000.
However, according to the financial report released by the company, Dingdong Maicai’s performance last year was not promising. In the third quarter of 2021, Dingdong Maicai’s net loss was 2.011 billion yuan, representing an increase of 142.66% compared with 829 million yuan in the same period of 2020. The financial report shows that in the first three quarters of 2021, the company saw an accumulated loss of 5.333 billion yuan.
Additionally, in December 2021, rumors of layoffs within Dingdong Maicai circulated in the market. Some employees unveiled on social media platforms that layoff rates in core departments such as procurement, algorithms and technology ranged from 20% to 50%. Dingdong Maicai responded that all business of the company is in normal operation, and that any changes were normal small-scale adjustments of organizational resources of the company.