Image Source : China Visual

BEIJING, October 4  (TMTPOST)— Dingdong (Cayman) Limited (Dingdong), a leading fresh groceries e-commerce company in China, will be discontinuing its services in Xiamen, Fujian province, at 18:00 on Saturday.

If users have not spent their top-up balance or their green card membership has not yet expired, they can contact the customer service to get a refund.

According to some consumers, Dingdong started to liquidate their groceries inventory in Xiamen at the end of September. Currently, if you open the Dingdong's app and select the delivery address in Xiamen, there is still a campaign called "Escape the City Program" on the home page, with up to 50% off on a whole range of products, but most of them are out of stock and the delivery is no longer available for booking.

In this regard, the person in charge of Dingdong said that the recent changes in Xiamen are normal business adjustment, and do not affect the overall operation of the company. Another person familiar with the matter told TMTPost that Dingdong's current strategic plan is to focus on areas where it can see profits.

Dingdong has also cut operations in or withdrawn from some cities this year, including Xuancheng and Chuzhou in Anhui province, Tangshan in Hebei province, Zhongshan and Zhuhai in Guangdong province.

As of now, orders can still be placed in 27 cities on Dingdong App, 10 fewer than the peak period in September 2021, 18 of which are located in the Yangtze River Delta. The number of front-end warehouses have no longer been announced since the fourth quarter of 2021.

After a series of cuts, Dingdong has seen signs of profits. In the second quarter of this year, the company reported revenue of 6.634 billion yuan ($843million), up 42.79% year-over-year. The net loss came in 34.5 million yuan ($4.85million), shrinking 98.22% year-over-year. A non-GAAP net profit reached 20.6 million yuan ($2.89million) for the first time.