Before the success of the "Thousand Regiments War" and the "Internet Taxi Subsidy War" by burning money to seize the market, many people didn't really understand this kind of gameplay.
Especially when I look at JD.com’s financial reports of losses every year, I think they are having a miserable life.
But in reality, for JD.com’s trading volume and revenue, that loss is nothing. What they want is the market.
Because the Internet market will amplify the power law, which is the winner-takes-all law.
The traditional economy is divided into regions, but the Internet has broken such boundaries.
Once you find an Internet vertical segment with opportunities, you have only one core goal: to become number one as quickly as possible, or second at worst.
If you accidentally become third or even worse, it basically means that your business has failed.
Therefore, those Internet startups, and the capital behind them, are like worms, burning money and fighting to seize the market.
Because if you fall outside third place, you're basically out of luck.
However, there are no absolutes in everything. Domestic Internet products are basically service-oriented.
For example, when Douyin entered the short video field, it was already 2016. Kuaishou, the market leader at the time, began to transform into short videos in 2013.
But Douyin is able to catch up and catch up. It can be seen that taking the first step may not necessarily lead to victory.
In the final analysis, products and services must be in place.
In this regard, Yixing’s taxi-hailing software is better than Kuaidi.
The former was developed by a team led by Lu Yan and is designed to be mature and easy to use.
Kuaidi is slightly inferior in this area. Although it can imitate the interface and functions of Yixing Taxi, the software still needs to be optimized due to team integration and short establishment time.
Another shortcoming there is that the entire enterprise was formed through acquisitions and mergers.
Judging from the size, it seems to be quite large. However, the actual combat power is not the case.
In mathematics, 1 plus 1 equals two.
But in business operations, the effect of one plus one may be negative.
During the "Thousand Group War", some group buying websites such as Lashou.com were keen on mergers and acquisitions and poaching people with high salaries, laying hidden dangers for the company's development.
Because there are people, there are rivers and lakes!
In one city, two group buying websites were originally competing, but ended up being merged due to acquisitions. They had one CEO and several vice presidents.
Do something, all kinds of nonsense.
And if things like poaching people with high salaries are not handled well, there are endless risks.
Just like recruiting surrenders and recruiting rebels during a war, entrepreneurial veterans will have opinions.
Good fellow, we fought with you, but we haven't gained anything yet. He was a surrendered general, and you gave him this and that!
If you really have the ability, you might as well say something.
The biggest fear is that if you hire someone with a high salary, you will fail to get things done, but if you have internal fighting, you will have a tendency to collapse.
Ali's new Kuaidi is based on Kuaidi established in Lin'an and acquired Didi and Bumblebee.
However, the three companies are not big, and none of them has grown, so they were lumped together by "capital" and formed into a new KuaiDi.
Because the three parties have similar forces, there are hidden dangers.
Speaking of this matter, Ma Yun was also very distressed.
He thought he was sure to invest in Yixing Taxi, but Lu Yan ended up choosing Penguin. Due to time constraints, he had no choice but to hurriedly come up with a new KuaiDi to compete with Yixing in the market.
We have to be impatient. After a year and a half of driving Yixing Taxi, there is basically no chance for subsequent capital to enter this market, unless it involves spending hundreds of millions of dollars.
So now, I admit it is really a waste of money, and I have to fight with Yi Xing!
July is the season of fire.
The subsidy war in the Internet taxi-hailing market has also become a real rage.
At this moment, Yi Xing and Kuaidi have been disbursing more than 10 million in daily subsidies for many consecutive days.
Many investors were dumbfounded, and the dozen or two dozen taxi-hailing companies that popped up later were also dumbfounded.
At this time, I still don’t understand that there is no room for them to survive in this industry.
Only one can survive, the easy one or the quick one.
And they can only hope to be acquired, otherwise they will fend for themselves and completely admit their losses and be eliminated.
As a result, Yixing Taxi does not want such a small taxi software company.
All city managers are recruited and trained by the company. Salespersons below who perform well will be promoted if they can pass the assessment.
This is not the case for Xinkuaidi. It has acquired too many small companies, resulting in many factions within the company.
Although Ma Yun is a boss among bosses and has outstanding vision, he stands too high after all. He has many things to take care of, although he is aware that Xinkuaidi has many problems.
However, there was no time to integrate, so we got to the point of taking a taxi with Yixing and having a decisive battle.
It's like a genius strategist who organized a group of rabble and relied on abundant weapons and forage to fight against well-trained troops with a fairly average performance.
Yi Xing's advantage is that the internal forces are unified, and Lu Yan has great prestige. However, Xin Kuai Di does not have such a person.
The fight between the two families reached a critical point, and some people even suggested that they should make a fuss about Lu Yan's style.
After all, men cheat only once or zero times!
But Kuaidi Company had several internal discussions, but no one could make a final decision.
First, without new materials, the lethality is limited.
Second, business wars involve individuals and family members, so there is some taboo. This is tantamount to attacking each other without limit. China's business leaders cannot guarantee that they have no dirty information!
The original China Resources Rich List was known as the Pig Killing List!
Unless, some woman jumps out on her own.
Furthermore, in August, it will be the annual World Athletics Championships.
If something happens, will the higher-ups have any ideas?
So, the two families insisted on continuing to burn money. If you subsidize 20 million, I will follow. If you subsidize 30 million, I will follow!
Like two masters competing for internal strength, no one dares to stop for fear of losing all their previous efforts.
But Brother Ma still couldn't hold it any longer, so he called Lu Yan and asked if he had any good ideas.
Because some of the money burned was paid by Penguin itself, and some was taken in half by Penguin and Yi Xing.
Because Penguin wants to promote WeChat payment and give Yi Xing subsidies, which is equivalent to spending advertising fees.
Compared with Alipay, WeChat Pay actually lacks a very popular application scenario. This scenario must meet three conditions: first, it must be mobile; second, it must be high-frequency; and third, it must have pain points.
In fact, for drivers and users, if you ask them to bind bank cards, credit cards, etc. on Yixing Taxi, their first reaction will definitely be rejection.
But WeChat Pay is much better.
This is also the reason why Penguin invested in a taxi-hailing software company no matter what. It is also the reason why Ali quickly integrated into a taxi-hailing software giant.
On the surface it is a battle over taxi-hailing software, but behind the scenes it is actually a war over payment software.
That’s why KuaiDi subsidizes 10 yuan, Yi Xing subsidizes 11 yuan; Yi Xing subsidizes 11 yuan, Kuai Di subsidizes 12 yuan...
It made the two big guys miserable.
However, Yixing Taxi has grown rapidly during this process.