Classified information web site rumors shrouded in burning money and group buying not life-saving straw

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

58 the same city, net, the two domestic classified information website of Big Brother, now somewhat similar. 58 Please Yang do endorsement, and net since last year to find Chen Yao to do endorsement, also because "Catch donkey Net" event lively. Recently, the two sites have been shrouded in rumors. The market was mired in bankruptcy, and 58 of the city was also exposed to huge losses. Although two websites are openly refuting the rumor. But in the overall slump in group buying site, a number of group buying website failures of the electric business in the winter, the two have been involved in the field of group buying hope to open the breach of the classification information site is shrouded in the shadow. "Burning money" has made it difficult to maintain its business model.

Two giants fall into bankruptcy losses rumors burn money buy not straws

"58 with the city crash imminent, last year 58 total income of 40 million U.S. dollars, the number of employees 7000 people, the total expenditure of 110 million U.S. dollars, 2011 58 with the city's annual loss of 70 million U.S. dollars." Its previously completed a, B, and C rounds of funding have been spent last 7 August. At present, 58 of the same city account only 30 million U.S. dollars, its monthly loss of about 40 million yuan, the company can only maintain operation for 4 months. "Recently such a statement has become a competition in the media coverage of the content." 58 with the city is about to break the capital chain, the face of the collapse of the argument has become a major forum, micro-bo Internet and the people of the industry to discuss the focus of hot topics. A "Netizen ten ask Yiu Jingbo" Post is the industry rumors, the stick to insider's tone, put the facts, data, uncover the truth, is a word to see blood, pointing to the key. In the article "Ten questions", in addition to questioning the previous financing and loss of the relevant data, but also disclosed 58 of illegal workers in the city of the shady-"58 do not give most of the sales staff Insurance and Provident Fund?" I heard that a year can save 30 million yuan? ”

And more reliable news revealed: "More than 58 former employees of the city have been illegal employment complaints, the Beijing Municipal Social Security Bureau Labor Inspection Department and other relevant departments are involved in the investigation." "58 of the same city founder and CEO Yiu Jingbo on March 25, said:" Some people exaggerate the negative impact of electricity dealers 58 with the city, the loss of the statement seriously untrue, the company will be profitable. But the explanation given by Yiu Jingbo is slightly understated, seems to be the suspicion of the evasive, also did not give more convincing data to let people believe rumors are fabricated.

Doubts about the 58 city have more to do with the purchase business. Earlier this year, "group buying two Shuffle" argument has begun to spread. And the recent mission treasure net of the incident also let the industry to buy hard to maintain confidence. Group buying is a low threshold industry, easy to enter difficult. Since 10 began to scrape the storm, the domestic already has thousands of group buying websites. As the leader of the classified information industry, 58 of the city will naturally not miss this opportunity to open up the market. However, group buying site has already begun to differentiate, the second echelon faces huge development problems. The operation is not fine 58 with the city group buying business naturally not optimistic. After several rounds of financing, 58 of the city's huge advertising effort is hard to put more money into buying businesses that also burn money. There have been rumours earlier that investors had asked 58 to cancel their group buying business to save money and maintain the core business. But 58 of the same city CEO has been insisting not to give up group buying business, rumors can not be groundless, in group buying distraction may indeed give 58 of the city with the capital of the operation of the weak, leading to its core business affected, operating underfunded.

Coincidentally, its rival net seems to be a common problem. Not only than 58 with the city earlier out of bankruptcy rumors. There are rumors that it abandoned the group buying business, began a large number of layoffs to remove part of the station. Although NET responded that it is simple to control the cost of group purchase, improve operational effectiveness of the action. But the Regiment 800 monitored the data shows that January 2012, the group purchased the total turnover is 47.26 million yuan, in the top ten independent operation of the site in the bottom of the list, compared to the December 2011 Market Group deal Total turnover of 70.84 million yuan, a large contraction. Classified information Web site to earn 1 dollars to spend 2.5 dollars is also the argument. At present, the classified information website Bai, the market, 58 with the city pillars, all take the advertisement as the main profit means. It is difficult to develop a better profit model. And advertising revenue hard to offset investment burning money, once the capital chain break, but it is difficult to maintain basic operations. The upsurge of group buying allows classified information sites to expect a piece of the market to expand their competitiveness. However, the group purchase itself is devastated, plus classified information site false information flooding, burning money and profit is not directly proportional to buy not only may not bring better development, or even drag it back. Although the current classification information site has the opportunity to launch a new round of development, through localization and O2O mode layout more offline services. But the situation of burning money, the most is Nirvana rebirth, or in the burning of money trapped dead, or a question. and small and medium-sized classified information site if no innovation, it is likely to face shuffle. (Text/triumphantly)