By HUA Zijian

Meituan Youxuan, the group-buying subsidiary of Meituan, is said to be set for a provincial-level organizational restructuring. An official announcement is expected any day.

Youxuan was founded in July 2020, initially under the leadership of CHEN Liang, former VP at Meituan. In early 2022, GUO Wanhuai, another VP, took over Kuailu (instant delivery), Maicai (groceries) and Youxuan businesses.

Youxuan just went through a major adjustment in April. The northwest region (Gansu, Qinghai, Ningxia, and Xinjiang) was divided, and business was reassigned to other regions because of the high cost of fulfillment in the region, and the small scale of operations.

The restructuring replaces regional management with provincial-level management, granting decision-making authority to provincial heads who will take responsibility for their own profits and losses. According to some employees, the previous structure left personnel underused and often led to evasion of responsibility and lack of clarity

In 2022, Metuan Youxuan’s losses reached a staggering 28.4 billion yuan (US$4.4 billion), making it the largest loss-making division within Meituan. Youxuan and Duoduo Maicaiare currently engaged in a life-or-death struggle for control of the group-buying market.      

A former employee said that despite substantial investment, the company finds itself in a critical phase of reducing costs and raising efficiency. Youxuan will inevitably have to streamline its workforce, particularly in Beijing.