TechNode spoke to the general manager at TusStar Ventures, which invested in second-hand marketplace Ponhu-Luxury in 2015.
Competition between China’s online used car sellers is increasing, as are public spats among players.
This is not the first time Guazi has been accused of unfair competition and attempting to mislead the public.
Chinese food delivery giants draw public ire, Dianping’s symbolic retreat is made official; and VC interest in e-commerce wanes.
Struggling used car selling platform Uxin is cutting salaries and suspending employees to cut costs amid the Covid-19 outbreak.
China’s second-hand car trading market has witnessed the rise of several top players include Uxin, Renrenche, Guazi, and Souche.
The used goods resale sector has had its share of problems including counterfeit goods, merchandise quality, and even legal issues concerning the sale of endangered animals.
E-commerce players and specialized verticals such as used car platforms are operating their own auction platforms.
Its stock price closed at almost one-tenth the value of its $10.49 peak price in December.
The company seeks to increase its focus on its retail business to improve lower-tier city penetration.