Meituan appears to be finally giving up on its self-operating?ride-hailing business.?

WANG Xing, founder and CEO, has told its staff in an internal memo that the company will gradually reduce financial and personnel investment in ride-hailing. Meituan will retain some of the team while the rest will be allocated to other business units.

Meituan began ride-hailing in 2017 when Didi Chuxing was dominating the market and immediately began a price war in Shanghai.?

A source close to the matter said the move doesn’t mean Meituan is giving up on ride-hailing but will run it in a more cost-effective way.?