There are only 55 full-time employees left at Daily Youxian. Why did the company find itself in such a situation?

Because the company's finances can no longer support the expansion of the Internet model, it cannot survive without making profits. There are only 55 full-time employees of Daily Youxian left

A few days ago, the former No. 1 fresh food company, Daily Youxian, released its annual financial report. The financial report data showed that the company’s total revenue in 2021 was 6.965 billion yuan, with total costs and The operating expenses are as high as 108.1 yuan. The company's revenue growth rate is significantly lower than the cost growth rate, resulting in the company still operating at a loss. The data also shows that as of the reporting date, the number of full-time employees in Daily Youxian has dropped significantly, from 1,925 at the end of 2021 to 55.

This data triggered heated discussions among netizens. Some netizens said that the current situation of Daily Youxian is difficult to recover. Others said that if there is capital injection, Daily Youxian still has a chance to complete the company's layout. of. The reason why the company is in such a situation is because the company's finances cannot sustain it.

Daily Fresh Food is a typical Internet model. At the beginning of its establishment, the company has been burning money in order to occupy market share. In the process of its development, burning money has become its rapid development. key factors for expansion. The company proposed a front-end warehouse model for distribution. This model greatly improved the company's growth rate and reputation, but it also greatly consumed the company's financial resources, so that the company was always in a state of loss.

However, under this loss-making situation, the company not only failed to slow down the pace of burning money, but also launched a subsidy war and continued to try various new businesses. Under the influence of various businesses, the company's cash burning rate has greatly increased, but it has not brought a big improvement to the company's operating conditions.

Under this situation, the money raised by the company flowed out like a flood, but its revenue was far less than its expenditure. Under such operating conditions for a long time, the company's finances could not survive, and no one was willing to continue to inject capital, so the company could only survive through various methods such as selling off assets and laying off employees.

In real life, there are many companies with similar Internet expansion models. These companies often gain the favor of capital through innovative models, and then use money-burning methods to gain market share. However, there are not many companies that can truly regain their premium rights. Most companies have burned down the company in the process of burning money. , Daily Youxian may also become one of them in the future.