After planning the shared bicycle plan, Zhang Yida began to raise funds.
Dogfud has withdrawn 5 million from the profits of the past two months, but they dare not withdraw more than that for fear of affecting the company's normal operations.
After all, this is Zhang Yida's cash cow. It still makes more than 20 million yuan a year. It can't bleed too much at once and kill it.
In addition, Yimin Financial Services Group and Ruixiang Jinke Group were approached to advance salary for the next year, which added up to only 5 million, which is not a large amount. Zhang Yida is the absolute controlling shareholder and chairman.
So it was easy to get the advance, and the finance was transferred to Zhang Yida's card, which was 5 million yuan after tax.
In addition, the total appraisal of the house and car was 7.14 million, and the loan was 70% for a total of 5 million. The company loaned the money and then lent it to Zhang Yida.
Zhang Yida has 2.5 million of his own capital, invested 1 million in Daiwei, and set aside another 500,000 for living expenses, so he can spend another 1 million.
A total of 16 million yuan was enough to start the shared bicycle project.
With the money, Zhang Yida registered a company called "Jingcheng Huimin Technology Co., Ltd."
From now on, Huimin Technology will be the main operator of shared bicycles, and the name of the bicycle will also be called "Huimin Bicycle".
Then Zhang Yida mobilized all his connections and began to recruit hardware engineers for bicycles and smart locks, and soon built a research and development team of more than 20 people.
After renting an abandoned factory workshop in the suburbs and buying a bunch of bicycle assembly parts, the hardware team began to develop the first generation of shared bicycles.
…
Huayi Capital Office.
Lei Dongming told Zhang Yida about the recent development of Huayi Capital.
"After nearly half a year of fundraising, Huayi Capital's first phase fund of US$250 million has finally been raised." Lei Dongming said with a happy face. During this period, he went to great lengths to raise funds and exhausted all methods.
"Oh, that's a good thing! It's worth celebrating." Zhang Yida was also very happy. He said with emotion:
"Toutiao, Didi, and Magnesium Group have finally raised the investment funds in place!"
"Of the 250 million US dollars, 100 million was spent on Toutiao, another 97.5 million was spent on Didi, and 50 million was spent on Magnesium Tuan. Only US$2.5 million is left."
Lei Dongming also lamented that after finally raising enough funds for the first phase, 99% was spent, leaving only 1%.
"$2.5 million is enough to invest in another project. I have a project here, are you interested?"
Zhang Yida said with a smile.
"What project is it? Let's talk about it." Lei Dongming raised his eyebrows and approached Zhang Yida, as if he was all ears.
“Bike sharing!”
Zhang Yida decided to raise another round of financing from Huayi Capital so that the money would not go to outsiders.
"Is it the kind of public bicycle that is placed in a public area for citizens to rent and ride?"
When Lei Dongming heard the word "sharing", he thought of public.
"Yes, public bicycles used to be municipal projects. The government took the lead in operating them.
Our shared bicycles are launched and operated by the company."
Zhang Yida nodded. Public bicycles first appeared in the Netherlands. Before the opening of the 2007 Olympic Games, the Beijing city government put 50,000 public bicycles in the city for the convenience of citizens and tourists.
"This project is not profitable! Many provincial capitals such as Beijing and Lin'an had public bicycles in the past few years, but we haven't seen them much in the past two years."
Lei Dongming is not very optimistic about this project. Municipal projects can no longer be carried out, let alone a private company. The project will definitely suffer huge losses, and major cities will not be able to carry it out.
"Profitability is still possible. Both Ruixiang and Yimin can place advertisements on bicycles. In addition, you can also charge for bicycle rental and riding.
The most important thing is that I plan to launch a bicycle rental APP. In the future, there will be 200-300 million users of the bicycle APP, which will become a huge traffic entrance."
Zhang Yida said with a serious face that since he decided to do shared bicycles, he must make it a national-level application.
"Two to three hundred million users? Still have traffic portals? Do you still need to place ads?"
Lei Dongming was also confused. There would be so many users?
Then he asked:
"With two to three billion users, you need to expand your business across the country? How many bicycles do you need?"
"With an urban population of 500 million, if there are 50 people per car, 10 million vehicles will be needed."
Zhang Yida believes that 10 million shared bicycles are definitely enough for the city. The total number of shared bicycles of all major brands in later generations has exceeded this number. The excess number has resulted in a lot of waste of resources.
"10 million...bicycles?"
Lei Dongming stuttered a little, and Zhang Yida was more shocked than the last.
"Yes, 10 million units will almost cover all major cities in the country. In actual production, I expect it will reach at least 5 million units. Because after other competitors enter the game, they will definitely put in bicycles frantically.
We are the first to complete the delivery of 5 million bicycles, and we are expected to win the game."
Zhang Yida had almost estimated the market development in his mind.
This is what he envisioned:
"We have recruited Huayi Capital to invest our own US$2.5 million angel round. After the R&D and production are completed in a few months, we will directly launch 10,000 bicycles at once.
After one or two months of operation, the operation is going well. We will directly launch Series A financing and then launch 100,000 bicycles to occupy the first-tier city market.
At this time, there will start to be followers, and there may be hundreds or thousands of bicycles put on the market initially.
Relying on its market share and first-mover advantage, Huimin Bicycle launched its third round of financing and launched hundreds of thousands of bicycles on the market.
At this time, competitors may have launched tens of thousands of units, but their market share and quantity still lag behind Huimin Bicycle.
Huimin Bicycle must take advantage of its first-mover advantages and financing pace to quickly defeat its competitors with its far-leading market share, forming the Matthew Effect.
When the number of Huimin Bicycles launched reaches the level of 5 million, and other competitors are still in the order of hundreds of thousands, then the balance of victory and defeat will basically tilt towards Huimin Bicycles."
"A bicycle costs 200 yuan, and 10 million units is 2 billion!"
Lei Dongming started to calculate the accounts and muttered.
"The 200 yuan you mentioned is an ordinary bicycle. Our bicycle also needs a smart lock. The body also needs to improve the manufacturing process in the direction of being strong and durable.
At least one car costs 1,000 yuan."
Zhang Yida corrected Lei Dongming, saying that he would not build a low-cost but high-damage bicycle like the previous FOF. Only good bicycle quality would make users prefer it.
"Okay, if we calculate the cost of 1,000 yuan, 10 million bicycles will cost 10 billion yuan. Even 5 million bicycles will cost 5 billion yuan.
Then the bicycle cannot be damaged, right? If it is damaged, it needs to be repaired or replaced, which is another cost.
Then it is impossible for these 5 million bicycles to travel to various cities, right? This requires transportation costs.
Then each city must have operating personnel, and the dispatching cost is another sum.
If the number of bicycles reaches several million, the number of employees at the headquarters is estimated to be thousands. This year’s labor cost will be at least hundreds of millions.
I did some calculations, and in order to achieve the situation you mentioned of operating 5 million shared bicycles across the country at the same time, at least 10 billion yuan would have to be invested."
Lei Dongming felt that Zhang Yida was usually a very smart person, so why did he want to do this project? He couldn't understand.
"Are you done? Let me explain this to you slowly!" Zhang Yida knew that Lei Dongming had never seen the grand event of shared bicycles in later generations with his own eyes. From the current perspective, it was indeed a bottomless pit.
"Wait, there is still a problem. How to make a profit? If you invest 10 billion and it can make a profit later, it is not impossible. It's just that I don't see any profit prospects."
Lei Dongming was so thirsty after talking that he just took a sip of water and added a few words to Zhang Yida. He really couldn't bear to see Zhang Yida jump into the pit.
"Cost and profit are two issues, right?"
Zhang Yida looked at Lei Dongming with a smile and was about to start teaching him.
"Yes, you convince me first. If you convince me, I will invest 2.5 million US dollars in you."
Lei Dongming shook his head as he spoke, thinking that this shared bicycle is not a good project. It sounds like a bottomless pit.
Zhang Yida said:
“Then let’s talk about costs first!
The tens of billions of costs you mentioned are true. You calculated this account very accurately. You are worthy of being a financial veteran!
The depreciation of a bicycle is amortized over 2 years, which means the cost is 5 billion per year."
Lei Dongming nodded. There is absolutely nothing wrong with this algorithm. The cost of 5 billion is only a lot more.
"Okay, let's talk about profit." Zhang Yida continued with a smile and a calm expression:
“Let’s talk about bicycle riding fees first.
A bicycle is ridden three times a day, charging one yuan each time. 5 million bicycles is 5.475 billion a year.
Now, let’s talk about the deposit.
The deposit for each user is 299 yuan. We assume that one bicycle corresponds to 10 users, that is 50 million users × 299 yuan, which is equal to 14.95 billion.
We do not touch user deposits, but we can cooperate with Ruimin Financial Management to launch a deposit financial product.
The loan interest of 14.95 billion is calculated at an annualized rate of 24%, and the income is 3.588 billion.
If interest is calculated for users at an interest rate of 12%, the investment income will still be 1.794 billion. Huimin Bicycle and Ruimin Financial Management will each take half and half, and Huimin Bicycle can earn 897 million in income.
There is also advertising. If Huimin Bicycle has tens of millions or hundreds of millions of users, then the advertising value will be great.
Car body advertising, APP startup page advertising, APP built-in advertising, APP diversion entrance advertising...
Later, if we add the Financial Supermarket and the Loan Supermarket to it, the annual advertising revenue will definitely not be lower than the current Ruixiang. Even 1 billion is enough.
Cycling fees + deposit financial products + advertising, a total of 7.372 billion.
Compared with the annual cost of 5 billion, do you think it can be profitable?"
Zhang Yida spread his hands and looked at Lei Dongming, who was looking thoughtful. He couldn't stop snickering in his heart. Was he about to be deceived by his brother?
"What you said makes sense! But I always feel that this matter is not that simple? Is there something that I have overlooked?"
Lei Dongming thinks this is feasible in theory, but the actual operation may not be that simple!
"Actually, I don't care much. The riding data and user information of shared bicycles are the most priceless.
With this information, we can not only place advertisements accurately and improve the advertising value; we can also cooperate with Mung Bean Credit to jointly build user big data.
In the future, if Mung Bean Credit makes money, part of it will be given to shared bicycles!"
In Zhang Yida's opinion, shared bicycles can also form industrial interactions with several current companies. This is what Zhang Yida values most.
As for making money? Zhang Yida has no idea. If he can break even in the future, it will be Amitabha!