Contents of this article
- 1. Huge loss of 40 billion
- 2. Recently, the Daily Youxian platform collapsed.
- 3.Who acquired Daily Excellent Fresh?
- 4. From "watching the future of fresh food" to "arrears of rent, wages and debts"
Huge loss of 40 billion
In fact, its business model had problems from the beginning, so even after burning 12 billion yuan, there was no way to make it profitable.
This is an original sin that is present at birth, and capital fattening cannot reverse it.
Some people analyze that the supply of materials in cities cannot be completely market-oriented. The bigger the city, the more it needs policy protection and even subsidies, such as the green pass policy. So far, last mile logistics, that is, door-to-door delivery services, has no policy protection, let alone subsidies. The possibility of this subsidy in the future is also very small. In emergencies, the government will guarantee that enterprises will be responsible for distribution. If a fully market-oriented system wants to make money, it must have differentiated services and products to avoid the scope of policy protection.
There are indeed many categories of fresh agricultural products that do not receive policy subsidies, such as imported cherries, off-season vegetables and fruits, seafood, cross-regional specialties, etc. These categories are also in urgent need, but the cost of attracting traffic is high. The categories that attract traffic require low customer unit prices, so the platform has to come up with a lot of category impulse within the scope of policy subsidies. The supply price can be at most parity with traditional merchants, relying on the subsidy impulse, and then By fooling a group of low-quality suppliers into the trap, all the money was burned in the end, and consumers were no longer loyal. The platform boasted and sucked a group of suppliers into the trap.
Once upon a time, Daily Fresh was as popular as it was popular. At its peak, it was out of the industry for four consecutive quarters, and Dingdong, Hema, etc. also had to retreat. In 2019, its business covered about 20 cities and had about 5,000 front-end warehouses.
In June 2021, Daily Youxian was listed at an issue price of US$13, becoming the first fresh food e-commerce stock. Unexpectedly, the listing was the peak, and the stock price fell all the way until it was delisted at US$0.142, which was bankrupt.
Summary: It’s too difficult to start a business these days, especially in the field of fresh food. If you can, don’t do fresh food. After seeing this news, a friend of mine who makes fresh food told me.
My friend’s words echoed in my ears like a bell. The news about the disbandment of the Daily Fresh team and the closure of stores across the country is sad. Although there is an impact of the epidemic, it is more about corporate strategy and value issues. Some people in the industry have put it rightly. At this stage of the industry, it is time to abandon the low-price method and return to the essence. Creating user and social value is the way to go.
Recently, the Daily Youxian platform collapsed.
It is definitely illegal to spread false news. This kind of behavior will definitely affect the normal development of the company, and it must be responsible.
Who bought Daily Fresh?
This is because there are many suppliers who want to get their money back from Daily Priority. A supervisor broke the news that they are now going through the process of disbanding in place. This model can easily lead to unclear capital flows.
From "watching the future of fresh food" to "arrears of rent and wages"
His whereabouts are now clear and the company's address has been changed. Many warehouses have already posted advertisements for rent, so they should have been disbanded now. Now that it has been completely shut down, there may be no way to develop it again in China. But there are also some reports that he may go somewhere else. If he is lucky, he may get support from the capital market again in the future.
Where will Daily Fresh go?
Now it is very obvious where he is going. He is about to close down and the company's address has been changed. Most warehouses have also posted rental advertisements, so many stores have been closed down. His stores have been completely closed, and there may be no way to continue to develop in China. At the same time, there is also some news that he is likely to go to other markets. Maybe with luck, he may be favored by some capital markets again. The main reason is that the company's development situation is not good, or it can be said that the funds are not strong enough, so it cannot operate.
What consequences will Daily Fresh face?
In fact, his end is now very obvious. Stores are closing across the country on a large scale, and the company headquarters has been moved. He is now facing bankruptcy in China, and most of his employees have been laid off. Such a company started out prosperously, but later owed a lot of money and eventually went on the road to destruction. But for a brand like this, the main reason why it goes this way is because it doesn’t have enough funds. He may go to other markets to obtain more sufficient support and may continue to develop.
Warm tips
Its end is now abundantly clear, with widespread store closures across the country and warehouses being advertised for sublease. This kind of store has also been moved to other places, and most of the employees have been laid off. Therefore, this company is facing bankruptcy and has no market for development in the country. So now the outcome of this company's collapse is doomed. It may develop elsewhere, and it may also receive support from the capital market in the future.
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