The market value of Daily Fresh has dropped by nearly 99% in one year since its listing. As a star enterprise favored by capital, Xu Zheng, the founder of Daily Fresh, has always told internal employees and external media that "we have no financial difficulties."

Since 2017, Daily Fresh Capital has invested in Times Capital, and even conducted two rounds of user group surveys for the company at the beginning of the epidemic in 2020, saying that the epidemic accelerated the development of the fresh food e-commerce industry.

Among the new user groups brought in after the epidemic is over, 86% of users will continue to use Daily Fresh.

Zhang Ziquan, a partner at Times Capital, once told the media that when Chinese e-commerce enters the 2.0 era, the core advantage of the front-end warehouse owned by Daily Fresh will no longer be able to catch up.

Youxian is the biggest opportunity for self-operated food e-commerce.

Daily Youxian used to be the darling of capital.

Behind it are Tencent Investment, CICC Capital, Tiger Management, Goldman Sachs China and many other star investment institutions, with a cumulative financing amount of more than 11 billion yuan.

By the time of its last financing before going public, Daily Youxian was valued at US$3 billion.

Capital enthusiastically pursues the so-called front-end innovation model, but always refuses to see the company lose money year after year, instead of seeing performance profit margins that have never exceeded.

This is also a microcosm of the brutal growth era of China’s Internet.

No matter whether its profit model can work or not, as long as the financing money keeps flowing.

Competition in the fresh food e-commerce market is becoming increasingly fierce.

In addition to competing with Dingdong, Tiantian Orchard, Duodian Fresh, etc., Daily Fresh also has to deal with the entry of e-commerce giants such as JD.com, Alibaba, Pinduoduo, and Meituan, which is quite stressful.

This once popular star fresh food e-commerce company is still facing internal and external problems and hidden dangers to varying degrees even after sharpening its skills and laying off most of its employees.

Daily Fresh Express service is closed nationwide and replaced with next-day delivery service.

Many employees said that they received a notice last night that all stores across the country will be closed every day, system-level updates have been completed, and Extreme Business has officially closed.