China-based Didi Global is closing its food delivery business in Japan, citing local market conditions.
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According to a statement, Didi Food Japan is set to end its services on May 25. The company will focus on its ride-hailing services in the country, which is operated by a separate entity, Didi Mobility Japan.
Most of Didi Food’s 200 employees will be laid off by the end of May, according to a report by Nikkei Asia. The report also points to the shuttering of the food delivery business in Japan as yet another sign of Didi preparing for its delisting in the US.
Didi’s food delivery business also supposedly struggled to operate in Japan due to a lack of support from SoftBank Group.
The company is also reportedly laying off as much as 50% of its staff at Didi Freight, its intracity logistics service. It was reported in February that Didi Global was planning to let go of nearly 20% of its total staff. The firm is going to focus on ride-hailing, vehicle manufacturing, and autonomous driving for growth in the future.
See also: Can Traveloka, AirAsia break into Indonesia’s food delivery duopoly?
Editing by Deepti Sri and Lorenzo Kyle Subido
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