Logistics unicorn backed by U.S. investors goes bankrupt

Business & Technology

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Yunniao Technology is a short-haul trucking platform that matches shippers with drivers. But according to several employees, the company itself is having logistics challenges:

  • The manager of Yunniao’s Weibo account used it to denounce the CEO, Hán Yì 韩毅, encouraging people to sue him and claiming some employees haven’t been paid for three months.
  • More disgruntled employees quickly emerged, claiming they were forced to buy the company’s financial products, and that drivers were required to pay a 4,000 yuan ($626) deposit before they could get jobs, but never had them refunded.

The context: Yunniao has over 1 million drivers, and as of 2019, it was valued at just over $1 billion, backed by investments from Warburg Pincus, Sequoia, and several Chinese players.

What’s next: The company is reportedly filing for bankruptcy. After announcing the news in a company WeChat group, the CEO withdrew from the group and has yet to make any public statements.