Beijing consumer rights group summons grocery firm Missfresh over complaints

Missfresh

09/08/2022 12:14

BEIJING, Aug 9 (Reuters) - A Beijing consumer rights group
said on Tuesday it had asked Missfresh  MF.O  to work on plans
to refund its customers and explain how it will rectify its
business after receiving a number of complaints, adding to
pressures facing the Tencent Holdings  0700.HK  and Tiger
Global-backed grocery startup. 
    The government-backed Beijing Consumer Association said in a
statement on its website on Tuesday that a large number of
Missfresh customers had complained about the platform's
"abnormal operations".
    Missfresh did not immediately respond to a request for
comment.
    The grocery delivery firm's troubles come as China's tech
sector grapples with slowing growth amid COVID-19 lockdowns and
tightening regulatory oversight. 
    The company pioneered one-hour fresh food delivery services
in China, a model that is extremely popular with consumers but
is labour and capital intensive. It listed on the Nasdaq in June
last year, raising $273 million. 
    However, the company's stock has lost 98% of its valuation
since and in late July local media reported that it had abruptly
laid off hundreds of employees and had not paid salaries,
triggering labour arbitration complaints. 
    Missfresh has cancelled its one-hour delivery service,
changing it to a next-day model, and told local media that it
had conducted layoffs due to business restructuring. 
    

 (Reporting by Sophie Yu and Brenda Goh; Editing by Jacqueline
Wong)
 ((Sophie.Yu@thomsonreuters.com; 861056692136;))