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Ten days have passed since it was revealed that there were large-scale "station layoffs" on February 18. during this period of time, main once denied that there was a problem with the capital chain, but recently, some media exposed the funding problem of Renmin car. Blue Whale learned exclusively that Renche owed debts in a number of advertising companies, and the advertising fees owed by focus Media alone were close to 10 million yuan. At the end of 2018, the main body of Renren vehicle operator was sued by focus Media and its subsidiary excellent screen Advertising to the court, but the details of the dispute between the two sides have not been made public.

People familiar with the matter revealed to the media that Renche owed debts to a number of advertising companies, and according to information on Qixinbao, on December 7, 2018 and December 11, 2018, Renren vehicle operator Beijing Shanyi Shanmei Technology Co., Ltd. was sued by focus Media and focus's excellent screen advertisement to the Shanghai Changning District people's Court, respectively, but the details of the lawsuit have not yet been made public. (Renren car is the brand of Beijing Shanyi Shanmei Technology Co., Ltd.)

Renren car, founded in April 2014, is a comprehensive automobile trading service platform integrating used cars, new car trading, financial services, after-sales and so on. In the past five years since its establishment, it has completed six rounds of financing, totaling 760 million US dollars. The most recent financing was in April last year, when Renren announced that it had received a new round of investment of $300 million, led by Goldman Sachs and followed by Tencent and Didi.

At that time, cracks had already appeared in the Renmin capital chain, and the financing of 300 million US dollars was only a drop in the bucket for Renmin. Last year, it was reported that Renmin had a monthly loss of more than 200 million yuan for several months in a row, and had sought bank entrusted loans to pay employees' wages.

After completing a new round of financing of US $300 million last year, Renren began to shrink its business instead, and finally announced the strategic upgrade of "New platform, New Retail" on February 18 this year. due to the outbreak of collective employee rights protection incidents caused by large-scale "shutdown layoffs", there is only one possibility for outsiders to implement business downsizing or even "disguised layoffs" just seven months after the completion of financing.

At the beginning of this year, Li Jian, CEO of Renche, sent a message on WeChat that he had received 4 billion yuan of financial support from Chengdu. Renche also explained that "4 billion financial support" does not mean that it is directly invested by the government, but that the government sets up a stage to assist Renche, gradually achieving 4 billion yuan or more in financial support through banks, funds, financial control platforms and other market means.

For a long time in the past, the "money burning" model prevailed in the used car industry, which is likely to continue in the foreseeable future. On February 28th, Guazi's parent company, Che many, announced the completion of US $1.5 billion in financing, and then Che many also said that the group's advertising budget for 2019 was 2 billion yuan.

Renren car is not at all lenient in advertising, with advertising expenses for Renmin car and Guazi rising to 500 million yuan and 1 billion yuan respectively in 2016. Renche was suspended for a period of time after burning out, and in October 2017, after Didi Capital injection, Renche decided to continue to invest 1 billion yuan to re-open the advertising marketing mode to seize the market. In order to create a reputation, Renche once signed Huang Bo as a spokesman and spent 70 million yuan on advertising.

Now it seems that everyone's car is overwhelmed, abandoning the city to close the station or to survive with a broken arm.

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