Meituan Youxuan, a grocery group buying business owned by Meituan, is to close across Northwest China except Shaanxi. Operations in Gansu, Ningxia, Qinghai and Xinjiang ceased on April 21. Operations in other regions will have minor adjustments.
Meituan Youxuan entered Xi’an, the capital of Shaanxi Province and the only city in the region with more than 10 million people, in early 2021. It quickly expanded to other provinces. Meituan Youxuan is said to have incurred huge losses in the region. The region is thinly populated and mountainous with less developed infrastructure, which pushed up costs.
Meituan Youxuan was operating in 30 provinces and, with 120 billion yuan (US$185 billion) of sales in 2021, far ahead of its biggest competitors.
Meituan Youxuan is the biggest money loser of its parent company. CEO WANG Xin has said the company will focus on reducing losses and improving efficiency.
