Beijing-based flash sales service Didatuan plans to shut down its group discount model on March 31, 2014, the company announced on its website.
However, its not a complete shutdown of the brand as Didatuan plans to change to a new business model soon. Details of the new model are not yet known.
Among the various travel products listed on site, the hotels section has the highest inventory with about 3,700 hotel deals. The site also sells deals for holiday packages, tours and activities and flight bookings.
The company's investors are IDG, KPCB, NEA, Greylock, and Northern Light Venture Capital.
Didatuan was founded in July 2010 by Song Zhongjie, former general manager of sales at Google China. A further three former Google executives - Li Jinlong (senior manager of channel sales), Zhu Min (manager of business development), Li Yuejun (senior channel manager southern China) - joined Didatuan in 2010.
While Didatuan is pivoting to a new business model, the group discount market in China seems to be alive and kicking.
Recent developments in this segment in China include Tencent's move to buy a 20% stake in Dianping (in addition to local reviews, it also has a group buying service), GaoPeng (Groupon is one of the stakeholders) secured $30 million in funding, and the country's biggest search giant Baidu buying 100% stake of Renren's group buying service Nuomi.