Alibaba-backed community group buying start-up Nice Tuan ceases operations in some cities, lays off workers
- Nice Tuan employees said the firm is halting operations in multiple cities amid higher competition and setbacks from Beijing’s tech crackdown
- Once a darling of the community group buying industry, the Alibaba-backed start-up has found it tough to compete against tech giants Meituan, Pinduoduo and Didi
The 3-year-old company, once a rising star in the industry, halted operations in Xian in Shaanxi province, Taiyuan in Shanxi province, and the Hubei cities Xiangyang and Jingzhou, according to people familiar with the matter.
A Nice Tuan staff member in Xian, who declined to be named because he is not authorised to speak to the media, said the company notified him of the decision last Friday during a team meeting. The company had started transferring inventory to other cities by the next day.
Hundreds of Xian employees were laid off, he said, adding that he is applying for labour arbitration because the company has not paid compensation.
Another former employee based in Wuhan, who declined to be identified because she signed a confidentiality agreement, said that local stations in Taiyuan, Xiangyang and Jingzhou, which serve as distribution centres, ceased operations and laid off most of their staff.
