China’s largest ride-hailing app Didi Chuxing’s competitor eDaijia confirmed on Sunday that it will lay off 20% of its staff. The company has witnessed a four-fold increase in its number of employees since the beginning of 2015. It currently suffers from overstaffing and work inefficiency due to errors in its recruitment and management strategy.
eDaijia, one of the the market pioneers in designated driver services in China, covers over 200 cities with 150,000 designated drivers. It used to own around 70-90% of the personal driver market, according to NetEase Tech. But since Didi Chuxing launched its designated driver service in August, eDaijia’s market shares have been in decline.