Pinduoduo‘s quarterly revenue has more than tripled year-on-year (YoY) as its strategy of gamifying online shopping has paid off, helped by greater marketing and price subsidies that ate into its overall profit.
The e-commerce giant’s revenue jumped 239 per cent from last year to 22.17 billion yuan (US$3.3 billion, for the three months ended March , better than the 19.71 billion yuan expected in a Bloomberg poll of 13 analysts. The Nasdaq-listed company’s adjusted loss per share narrowed by 44 per cent to 1.52 yuan, beating the expectation of 2.25 yuan.
”As we work towards our goal of becoming the world’s largest agriculture and grocery platform, we must also seize the golden opportunity to transform and modernize the agri-food system,” said Chen Lei, Chaiman and Chief Executive Officer at Pinduoduo, in a statement.
Shanghai-based e-commerce giant is also facing challenges at home and overseas due to US-China tech tensions and Beijing’s antitrust probes
Pinduoduo’s results come as the company sharpens its focus on agriculture and online groceries and after the surprise departure of founder Colin Huang in March, who handed over the reins as chairman to chief executive Chen Lei.
The Shanghai-based company has been investing heavily in new technologies with the aim of becoming the world’s largest agriculture-focused technology platform. Its new grocery delivery service Duoduo Grocery, known as Duoduo Maicai in Chinese, has helped drive user growth during the pandemic.
Author: Yujie Xue, South China Morning Post