11.8 C
New York
Sunday, December 6, 2020
Home Trends China’s Craigslist continues growth after netting 100 million small-town users

China’s Craigslist continues growth after netting 100 million small-town users

58.com, the Craiglist of China, is making a massive push to pick up rural users as it hedges China’s economic uncertainties. During the third quarter, revenues grew 33.2 percent to $527 million and net income jumped 106 percent to $106 million year-over-year.

The classifies giant said in Thursday’s earnings call that it added over 100 million new users in 2018 for 58 Town, its app aimed at the new wave of internet users outside China’s megacities. Continued growth in the less developed regions, the firm believes, will act as a buffer against China’s economic uncertainties.

“Despite an uncertain macroeconomic environment, the China market remains massive and we continue to see enormous opportunities in lower-tier cities and towns where product innovation and technological advances are driving offline-to-online user conversion and substantially improving the services we can offer,” said the firm’s chief executive officer and chairman Michael Yao.

58.com, which went public on the New York Stock Exchange in 2013, became a dominant player in China’s classifies and listing market after gobbling up archrival Ganji.com in 2015. In 2017, it launched 58 Town as an extension of its urban-focused 58 Tongcheng, which means “intracity” in Chinese.

Like its sibling, 58 Town lets users list trading arrangements spanning from jobs to used furniture, akin to how Craigslist works. It has the additional flavor of a small-town life, such as notices of missing people, which would not work for a city with over 20 million people like Beijing.

The rapid growth of 58 Town is a testimony to the potential outside China’s urban centers. Cheap smartphones and the ubiquity of social media platforms, in particular, have accelerated the app’s growth, Yao said in the call.

With Tencent being its strategic investor, 58.com is able to tap into the massive user base on the social giant’s WeChat messaging app. Indeed, “WeChat-based [users] on 58 Town platform have grown beyond” the company’s “expectation since the summer of 2018,” said Yao. Users are able to access 58 Town via WeChat’s “mini-program” setup, a form of lightweight apps that run within the messenger without additional downloads.

Other internet players eyeing China’s hinterlands are Pinduoduo, an emerging challenger to Alibaba and JD.com that listed in the US in July, as well as Qutoutiao, a contender to ByteDance’s news aggregator Jinri Toutiao that also went public recently.

58.com says it’s not planning to monetize its Town app in the near term and is focusing on user penetration at this early stage. The firm earns the bulk of its revenues from advertising fees as well as subscriptions on Ganji and Anjuke, a property listing provider it acquired in 2015.

Source: TechCrunch

To Read Our Daily News Updates, Please visit Inventiva or Subscribe Our Newsletter & Push.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -

Most Popular

UN chief Guterres, 36 UK lawmakers express support for farmers’ protest

The spokesperson for UN chief Antonio Guterres and a group of 36 cross-party UK parliamentarians have come out in support of the agitating Indian...

Haryana health minister tests COVID positive, had got one shot of 2-dose trial of vaccine fortnight ago

Haryana Health Minister Anil Vij, who had got one shot of the two-dose trial of COVID-19 vaccine Covaxin a fortnight ago after he offered...

Tell-Tale Signs of a Malfunctioned Transmission System

You understand your vehicle perfectly well, and when it starts behaving differently, you will immediately notice. Do you hear any strange sounds or even...

Pondy govt opposed to privatising power distribution: CM

Chief Minister of Puducherry V Narayanasamy on Saturday said the territorial government was against the Centre's move to privatise power distribution. "The Centre's current proposal...

Recent Comments

%d bloggers like this: