O2O Industry In Winter 58 City Transformation Transformation

O2O services, because of the particularity of their industries, are being affected by the negative effects of the epidemic.

In March 3rd, on a professional social networking platform, a netizen certified as "58 city employees" said that 58 cities had begun layoffs in recent years, and the proportion was as high as 20%. In addition, unilateral compulsory employees were suspended for 2 months, with only 80% of the basic salary, that is, 1760 yuan. The proportion of pay cuts in various departments of the 58 cities is different. In some departments, only 60% of the total wages are actually paid. "Five days a week, two days to go to the company, three days to work at home, but two days to ask for leave."

Similarly, on micro-blog, there were more than 58 city employees anonymous to the twenty-first Century economic report reporter confirmed the news. However, 58 city related people in an interview with our reporter said that at present, 58 city related personnel are still in line with normal business arrangements, the news of layoffs is not true.

In recent days, with the introduction of relevant policies of various departments, enterprises resumed their work and resumed production in succession. For the O2O industry, whether it is domestic, intermediary, or real estate services, employees are bound to have close contact with people, and the road to re employment is even more difficult. In particular, there is no profitable business sector, and this blow is nothing but worse.

Save the winter

In twenty-first Century, the economic news reporter noted that the staff who had broken the news had posted a "waiting for agreement". According to the agreement, the market condition changes due to the impact of the new crown disease, which has a major impact on the production and operation of Party A, causing Party A's corresponding position to stop production and stop production. And Party A is "Beijing city net adjacent Information Technology Co., Ltd.", that is, the 58 city company's general name.

The move is intended to save the winter and is the only way to transform. Public information shows that the 58 city was founded in December 2005. In October 31, 2013, the 58 cities were listed on the NYSE. In 2015, the 58 cities completed the merger of Anju and Zhongcai network, and formally merged with Haji net in November of the same year. In May 8, 2016, the 58 city Logo upgraded its brand, and the 58 city became the 58 group's sub brand. Its business mainly covered recruitment, real estate, automobile, second-hand, housekeeping and so on.

This is not the first time 58 cities have been trapped in rumours of layoffs. In 2019, the 58 city CEO Yao Jinbo sent an internal letter, saying that in the annual meeting of the beginning of the year, it was mentioned that no layoffs were made this year, but it did not mean that they did not eliminate or replace people. A specific approach was to downgrade or to take 10% of vice presidents by the end of the year. "Please go" is not a layoff, but it has caused controversy outside.

Although the news of the layoffs has not been confirmed by 58 cities, the decline in orders is evident during the epidemic. Public revenue shows that in the past year, the revenue growth rate of 58 cities has been declining, from 30.6% in the fourth quarter of 2018 to 22.5%, 20.5% and 17.4% in the first three quarters of 2019, and the growth rate has dropped to below 20%.

Mou Hao, a lawyer of Beijing Yiqing law firm, believes that SMEs have encountered difficulties during the epidemic. 58 this regulation does not violate labor related laws and regulations. If employees now get full pay, I am afraid that after a few months, they will have to wait for economic layoffs. "According to the law, during the period of the outbreak of the epidemic, if the family does not return to work, it is necessary to give priority to the normal wage distribution according to the annual leave of the employees. If the enterprises do not rework for a long time, the enterprises can arrange for the workers to wait for posts, and pay 70% basic living expenses according to the minimum wage standard of the city."

O2O's dilemma

In the past, as an information distribution platform, the profit model of 58 cities relied on information release; now, 58 cities try to transform from information distribution platform to integrated life service platform. But behind the transformation of the 58 cities, there has always been a big pain point, that is, "false information".

According to surging News reported on 2018, through the Chinese referee network search to 60 cases in recent years through 58 city, Ganji network released false recruitment information fraud case. Among them, 248 defendants were fraudulent by issuing false recruitment information, and more than 5500 victims were cheated. The amount of fraud was nearly 100 million yuan. When the court heard the relevant cases, it sent judicial advice to 58 cities, and suggested that it take steps to block the loopholes in the platform supervision.

The "false information" is not the only pain point in the development of the domestic industry. In 2019, according to the homemaking service industry report released by 58 cities, the scale of domestic service market in China amounted to 540 billion yuan, and the number of personnel in domestic industry was 30 million. However, in the rapid development of the home economics industry, there are still shortcomings in the system of management standards and imperfect laws and regulations, and show the pain points of the quality of the housekeeping personnel, the lack of wages and holidays, and the lack of health guarantee for the domestic workers.

Twenty-first Century economic report reporter learned that the domestic industry has no successful business model to scale profits. Such as cloud home economics, Ji Jie alliance, while providing service staff information, it can not standardize the standards of service personnel, resulting in mutual buck passing after problems arise. However, if the proprietary platform reaches home, such as 58, e Jia Jie, and so on, it will be faced with a difficult problem. If self-employed enterprises expand their scale, they will retrain their personnel and start business again. Staff salaries, advertising, management costs, legal costs and other costs remain high.

In fact, affected by the epidemic, many industries have begun layoffs and pay cuts. Recently, there was news that excellent letter made a short-term wage reduction adjustment during the epidemic period, and the salary level of the bottom employees to senior executives ranged from 20% to 40%. Some employees stopped working from March 1st. Melon seed used car parent company many group also issued an internal letter, decided to implement the phased salary and holiday adjustment plan for the group position.

Besides catering, business super department stores, cinemas, KTV and other lines strongly rely on the industry, O2O industry is also facing challenges of survival. Not long ago, Wang Guobin, founder and CEO of Tuba rabbit, announced to all the staff that "the epidemic has not only brought serious impacts on catering, entertainment and other service industries, but also caused a severe winter in the decoration industry. At present, we can not estimate that the losses caused by the epidemic to the industry may exceed our expectations. We must prepare for the worst and strive for the best.

In order to save themselves, tuba rabbit launched the online "zero touch room" and live broadcasting business, and began opening to the renovation enterprises. Official data show that as of February 24th, nearly 400 home decoration enterprises opened the live broadcast area through the tuba rabbit platform.

The 58 city is also planning transformation, trying to transform from information distribution platform to integrated service platform. "58, the growth of the same city mainly depends on the number of members, that is, the growth of the number of customers and the growth of revenue from advertising by members. In the future, we may provide more professional services to key customers and brand customers. This part of the revenue may be higher. " In November 2019, after releasing the third quarter's earnings report, Yao Jinbo said in a conference call.

A few days ago, 58 city companies changed their business scope, added new AI application software development, artificial intelligence public service platform, and AI general application system, and also added cultural entertainment brokers Services, digital culture and creative software development. The road of transformation is long, but the 58 cities also need to survive the winter first.

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