Chapter 578: Using Hype to Ignite the Trend
After the first batch of news was released on tonight's headlines, netizens' comments on the delivery service gradually increased.
Many people are lamenting that the development of technology has made life more convenient, but many people are also complaining about why there is no food delivery in their area.
The momentum of public opinion is very good.
So Boss Jiang, the man behind the scenes, asked Lu Feiyu to add a few more news articles, and the focus of the reports shifted from the queues outside Burger King to the introduction of quick ordering meals.
"Boss, our quick-order meal is on the news!"
"What did you say?"
"The fast-food delivery riders in pink clothes add a touch of warmth to this winter when travel is inconvenient."
"Oh, this little word is quite well written!"
The owner of Kuai Dian Dining is Xi Zhongwen, and he has been in the food ordering business for three years.
Previously, we had been taking orders over the phone, which meant outsourcing the delivery business to nearby merchants, negotiating low prices, making a profit from the difference, and then posting advertisements in office buildings to form a demand chain.
The office building is full of white-collar workers who need to solve the problem of three meals a day, and sometimes a phone call may require a lot of orders.
On top of earning the difference from the merchant, he will also charge an additional delivery fee.
But if the number of orders is large, the delivery fee he charges will be lower accordingly.
Why? Because if there are more orders, he can make a lot of money just by the price difference.
Moreover, whether you order one or ten copies, they will be delivered at one time, so the cost will not increase much.
Under this circumstance where the delivery fee would be discounted or even waived if the order was large, Xi Zhongwen gradually started to expand his business and contracted the food delivery business for many companies.
Then he gave instructions over the phone, asking his deliverymen to pick up the food and deliver it to the designated location.
If you ask how much you can earn, it’s actually not that much, because the labor cost in this industry is very high and it is difficult to reduce it. But the good thing is that his business has been on a growth trend, making the future full of infinite possibilities.
But since it is a business, the idea of expanding it is an involuntary thought.
The same is true for Xi Zhongwen, who gradually becomes dissatisfied with the current scale.
Later, the mobile Internet boom began, smartphones took up more and more market share in China, and various apps emerged, changing people's lives in a very short period of time.
This inspired Xi Zhongwen to think about the integration of food ordering business and the Internet.
So in September last year, the Kuaidiancan food ordering platform was officially established.
But just like the bottleneck that Hungry encountered, if they want to expand this industry, what limits them is not the ordering methods such as phone, text message or Internet, but the number of delivery staff.
Labor costs are very expensive, and it is difficult to expand in a short period of time unless there is a large capital investment.
Xi Zhongwen also approached several investment institutions, but many of them waved their hands when they heard his proposal.
The brutality of the group buying war is still fresh in our minds, and the industry competition where one person's success depends on the sacrifice of thousands of others has made many venture capital institutions reluctant to get involved.
But Xi Zhongwen didn't expect that the snow would be so heavy this time.
The orders on their backend surged like crazy and they simply couldn’t deliver them all.
So he quickly asked the marketing manager of Kuai Dian Food to recruit a group of part-time workers, as many as fifty people.
Of course, he never expected that his food ordering platform would make the headlines and be the target of reports all day long. Now, if he casually checks the Internet, it will be full of news about his quick food ordering.
Xi Zhongwen felt like he had met a bodhisattva.
The strong publicity on tonight’s headlines soon led to a call from an organization called Excellence Venture Capital, who wanted to talk to Xi Zhongwen about ordering food quickly.
Huge wealth!
Xi Zhongwen had a premonition of great wealth! At three o'clock in the afternoon, Xi Zhongwen and several partners in his team rushed to Excellence Venture Capital.
At this time, Wei Chengkun, the boss of Excellence Venture Capital, and investor Han Liang were waiting for them in the conference room. The two sides shook hands cordially after meeting.
"Mr. Xi, we saw the news about the explosive growth of quick-order meals on the headlines tonight. We are very optimistic about the development model of quick-order meals. I wonder if Mr. Xi has any idea of expanding it?"
"Of course, I have, but I'm having trouble getting funding right now."
"We are here to help you solve this problem."
“…”
At three o'clock in the afternoon, Xi Zhongwen came out of Zhuoyue Venture Capital's company and completed his first meeting with investors.
After this meeting, he could easily see the excitement in Wei Chengkun and Han Liang, which meant that getting the investment was almost a sure thing.
However, Wei Chengkun did not give a clear answer, but said that he needed to make an evaluation and consider the issues of funding and shareholding.
So, the two sides agreed to meet again next week.
The next time we meet, we will discuss the investment capital, shareholding ratio, and some other details.
The situation is very good! At the same time, at the headquarters of Ele.Bu, Zhang Xuhao also changed into a suit and arrived in Kyoto with Chen Jiaxin, and came to the headquarters of Dianping.
Zhang Xuhao had discussed with Chen Jiaxin before, hoping that she could contact Tencent's investment manager Peng Sheng through Volkswagen's connections.
But like Alibaba's investment manager, Peng Sheng also realized that the food delivery industry might burn more money than the group buying industry, so he politely declined.
Besides, even if they were hungry, it wouldn’t be worth their effort given their current size.
However, after the news reached Zhang Tao, he had different ideas.
Under the pressure of group buying, Dianping can no longer make any waves, and even if it makes additional investments, it may be in vain.
He now needs a new growth point to ensure that his assets will not shrink.
With the idea of trying his best, Zhang Tao specially asked Chen Jiaxin to bring Zhang Xuhao over, which led to the meeting at the Volkswagen headquarters.
"Please take a seat, Mr. Zhang. Since we are relatives, there is no need to be polite."
Zhang Tao personally brewed tea and brought it to the two people.
Zhang Xuhao immediately smiled and said, "I am not Mr. Zhang. You are my senior. How dare I call you Mr. Zhang in front of you? You should just call me Xiao Zhang."
"Hahahaha, I have indeed been working for Dazhong for many years, so it's not an exaggeration to say that I am a senior. How about this, I will be generous and call you Xuhao."
"Okay, Mr. Zhang."
Zhang Tao sat down on the chair and said, "I have heard from Mr. Chen about Hungry. To be honest, I am very interested in your meal ordering business and have some investment intentions, but there are some things that we should discuss face to face."
Zhang Xuhao nodded: "I understand this. If you have any questions, please feel free to ask me."
"Did you bring your development plan?"
"Yes."
Zhang Xuhao was planning to meet Peng Sheng from Tencent's investment department, so he prepared all the documents and handed them over directly from his bag.
After reading it, Zhang Tao roughly understood Ele.me's current operating model, so he started talking about the issue that he was most concerned about, which was cost and profit.
Regarding this, Zhang Xuhao also prepared the documents, and a lot of the data were clear at a glance. This sufficient preparation made Zhang Tao feel a little more at ease.
Because when investing, in addition to looking at the company, you also have to consider the boss’s character.
The fact that Zhang Xuhao was able to prepare things so thoroughly shows that he takes this matter very seriously and is not the kind of person who would run away after making a quick buck.
However, when Zhang Tao was checking Ele.me's recent operating costs, he couldn't help but frowned slightly.
"Um, the labor cost of Hungry is... zero?"
"Yes, it's Zero."
Zhang Tao pursed his lips: "No basic salary?"
Zhang Xuhao smiled slightly: "We are doing a part-time model. We pay according to the number of orders delivered. The more you deliver, the more you earn. This is also to encourage riders to take more orders."
"Then you don't buy insurance? Real-time delivery requires riding an electric bike, which is still very dangerous."
"Since it's a part-time job, there's no need to buy insurance, which saves a lot of money and reduces the trouble for the company."
Zhang Tao was stunned for a moment, then took a sip of tea: "There's not even insurance, and it's required to be delivered within half an hour, can you recruit anyone?"
Zhang Xuhao coughed and said, "As long as the delivery fee is high, of course there will be people willing to do it. So I want to expand the scale now, which requires a lot of investment."
"The delivery fee is so high, it is also a cost."
"The industry is just starting out, so we have no choice but to spend this money, because there are not many people willing to be part-time riders, so we can only start from this aspect."
"What about the later period?"
"In the later stage, when the industry is well established, we will reduce part of the delivery fee within the acceptable range of the riders. At the same time, we will increase the price of vegetables on the platform and let consumers bear the rest."
After listening to this, Zhang Tao opened his mouth and took a deep breath after a while.
Talented people emerge in every generation, but when it comes to ruthlessness, young people are still the most ruthless!
What does Zhang Xuhao mean? First spend money on subsidies, give high delivery fees, and foster the rider industry and consumer habits.
When the industry matures, the number of riders reaches saturation, and consumers can no longer do without food delivery, the cost will be shared between consumers and riders.
In this way, the biggest cost item of the food ordering platform is gone! Talent! The most important thing is to attract people with high delivery fees in the early stage and expand the industry, rather than buying insurance for the basic salary. This has another benefit.
That is, there will be a general consensus in the rider industry that it is normal for part-time riders not to buy insurance.
Once such an industry consensus is formed, it will be a blessing in disguise! "How about this, Xuhao, you and Mr. Chen stay in Kyoto for two more days, I'll help you book a hotel, and then I'll discuss it carefully."
"Okay, then I'll stay for two more days."
Zhang Xuhao actually knew that Volkswagen, a gradually declining company, could not invest much money. At most, it would be one or two million, which was just a drop in the bucket for the development of the industry.
But he still lowered his posture and said all the good things, because Tencent was standing behind Volkswagen.
As long as he can take advantage of Dianping's investment and launch a successful expansion campaign, he is 90 percent sure that he can hook up with Tencent.
This is how running a business works. You must first attract the attention of capital and demonstrate your talents before you can obtain a steady supply of ammunition.
After leaving Dianping, Chen Jiaxin took some time to go back and find Zhang Tao.
"Mr. Zhang, do you feel hungry?"
"Very good. If his current business model can be implemented, it will definitely have great potential. The most important thing is Zhang Xuhao, who is very ambitious. The young people nowadays are really much sharper than us old guys."
"It seems that you have also felt that his personality is somewhat similar to that of someone else."
"He is good at calculation and planning. I seem to see the shadow of Jiang Qin in his past."
(I was caught in the previous chapter, so I modified it a bit. Please give me a monthly ticket!)
(End of this chapter)
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