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The 58 group purchase mode again exposed the massive layoffs rumors suspected fell by the electricit

news August 9th, after June 5, came 58 city capital chain tension rumors, recently disclosed insider, to cut 58 city national team before the group purchase, involving hundreds of people, the people of Xu Guipeng, vice president in charge of group purchase is outgoing.

the source, as an important part of the layout of the electricity supplier, 58 city buy business has failed. 58 days ago, the national team has begun the abolition of group purchase, involving hundreds of people, the principle of "Beijing is temporarily motionless, other city started. The first internal transfer to the direct marketing sector, is not directly out of turn." It is reported that the layoffs spread to the fate of the 58 city executives, Xu Guipeng, vice president in charge of group purchase will leave.

continued to burn, group purchase and the short-term is difficult to profit, let the 58 city have relied heavily on "cash flow business model" – the 58 group purchase is facing great difficulties, also put 58 into the development mode of "war". Some analysts said the recent pull thousands of network products settled behavior, is expected to transition to the group purchase platform, "but the 58 group purchase in the industry is still not in the top six, give up the flow of advertising and group purchase navigation station under the condition that the flow of less than one million level, do group purchase platform road is destined to go".

buy outside, 58 city also in the new business attempt. Second hand transaction security, integrity listings, used car consumer protection is the main push products, but has not yet seen the expected results, the frequent occurrence of disputes to ensure that its commitments and guarantees can not be honored. At present, the second-hand goods have secured transactions from the default options first became optional, guarantee its commitment to honour; second-hand car consumer protection in vehicle service still requires the user to pay out of pocket.

according to investment bank insiders, 58 city last year, spending $130 million, revenue was $40 million. In addition, the 58 city C round of investment capital LLC has sold 58 city CEO Yao Jinbo arrived to all their shares. In December 2011, 58 city announced $60 million C round of financing, capital investment led by Hua Ping, Yao Jinbo with $5 million investment, then the D round of financing is also led by Hua Ping, Yao Jinbo with the cast. The investment bank said, when Yao Jinbo with the vote, will be part of the big education shares to offset the Warburg capital, when the stock value is greater than the investment value. But then during the first half of education shares fell, Huaping capital loss and sell all the shares so far.

inquiry, during June 1, 2011 to December 31, 2011, Yao Jinbo is indeed gradually reduce the education of 625 thousand shares, accounting for the decline from the previous 10.3% to 9.4%.

the above analysis that the classified information website either 58 city or ganji.com, in recent years, almost all business models emerge in an endless stream tried, but really suitable for their own pattern is still unclear, from dependence on capital investment in order to survive, to continue to try to profit, classified information website should be gradually to enhance hematopoietic function.

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