The compensation system was introduced in Japan where employee retention is a big challenge for employers amid labor shortages.
Founded in 2013, Tokyo-based Mercari has more than 1,000 employees in Japan and more than 200 workers on its payroll in the U.S. It entered the U.S. market in 2014.
The company decided to wind up its U.K operations from March. It offers absolutely free services in the European market unlike in Japan and the U.S. Its London office is home to 50 employees, according to its LinkedIn profile. Mercari expects to conclude its U.K. shutdown by June 2020.
The peer-to-peer marketplace made an outstanding debut on the Tokyo Stock Exchange with a $1.2 billion U.S. initial public offering in June last year. It has been downloaded around 70 million times in Japan where its main competitors are Jmty.jp, Yahoo Auctions, and Rakuma.