Nice Tuan

The business model centered on recruiting local community leaders—often stay-at-home parents or small store owners—who would collect orders from residents in their neighborhood. By aggregating these orders, Nice Tuan could purchase fresh produce, groceries, and household necessities in bulk directly from farms and suppliers, passing the cost savings to consumers. This model significantly reduced logistics and customer acquisition costs. Deliveries were made to the community leaders, who managed the final pickup by customers, often from their homes or stores which acted as self-pickup points.

Nice Tuan experienced rapid growth, particularly during the COVID-19 pandemic, as it was designated an 'essential service' in several cities. Its daily order volume surged, and it attracted substantial investment from prominent backers, including a series of funding rounds involving Alibaba, GGV Capital, Qiming Venture Partners, and DST Global. At its peak, the platform served millions of households across thousands of cities and towns in China. However, the community group-buying market became intensely competitive with the entry of tech giants like Meituan and Pinduoduo, leading to fierce price wars. This, combined with increased regulatory scrutiny and fines for anti-competitive practices like price dumping, put immense pressure on Nice Tuan. Despite raising a significant $750 million Series D round in March 2021, the company struggled to maintain profitability in the cash-burning environment. Starting in mid-2021, Nice Tuan began to scale back operations, laying off staff and shutting down services in multiple cities. By March 2022, the company had reportedly ceased all its operations.