China’s Meituan Dianping, an online food delivery-to-ticketing firm, said its fourth-quarter operating loss more than doubled as fast revenue growth was offset by sharply rising labor costs as it took on more staff.
The company, which is backed by tech giant Tencent Holdings Ltd and listed on the stock market last September, said its revenue grew 89 percent in October-December to 19.8 billion yuan (USD 2.9 billion).
Food orders made up the majority of sales in the quarter, as they did in the third quarter and the company reported a growing user base and increasing gross merchandise volume for its delivery service. However, these gains were offset by having to pay higher labor costs as order volumes jumped.
As a result, Meituan reported a net loss of 3.4 billion yuan for the quarter ended Dec. 31, increasing from a 2.2 billion yuan loss in the year-earlier period.