Didi rival Yidao backtracks on driver-payment mechanism amid bankruptcy rumors

Chinese ride-hailing firm Yidao Yongche has delayed the relaunch of an online cash withdrawal mechanism that would allow its drivers to get paid, breaking an earlier pledge to do so by Feb. 22.

“We have encountered a lot of unexpected incidents as the capital market cools down,” The Paper (in Chinese) cited Yidao as saying.

The news represent the latest in a series of financial woes for the company under its current backer, Taoyun Capital. Beijing-based investment company Taoyun took over Yidao from disgraced Chinese entrepreneur Jia Yueting’s technology conglomerate LeEco in June 2017. Jia is also the CEO of struggling electric vehicle startup Faraday Future. Taoyun is one of the main creditors asking Jia to pay off his debts.

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