Chapter 597: Spending Money Again It was
a drizzling Qingming Festival, and the temperature dropped slightly.
In a world that ordinary people cannot feel, the battle of Internet business is like a small hotel near a university welcoming the weekend, and the battle is already going on.
The news of the release of Xiaomi 2 has been hyped since then, and Huawei's Mate series has also been put on the agenda.
The three domestic telecom operators also took advantage of the situation and launched the latest traffic discount packages, targeted packages and contract packages to compete for users.
The mobile Internet market is expanding day by day.
Mobile games such as Fruit Ninja and Plants vs. Zombies have been launched one after another, and root tools have also flourished, marking the increasing maturity of this market.
In terms of e-commerce, JD.com, Suning and Gome have raised funds again and seem to be planning to make some big moves in the second half of 2012.
During this period, Alibaba bought back 20% of Yahoo's shares, and the entire company was truly under the full control of Boss Ma.
Subsequently, Boss Ma cooperated with Acer and invested a large amount of money to build the Alibaba Cloud Phone, intending to officially enter the smartphone field.
In the same year, Youku and Tudou announced their merger, and 360 began to develop a search engine.
The number of active online users of WeChat finally surpassed that of Weibo, and Tencent Weibo finally made a comeback when it was badly beaten by Sina Weibo.
In 2012, there were many major events in the Internet market, which seemed to be heralding the arrival of a more prosperous era and attracted the attention of countless investors.
"Since 2010, the domestic Internet market has entered a period of rapid development, especially with the popularization of mobile devices, which has accelerated this process. Among them, there are several representative companies that can be regarded as the pillars of the Internet industry."
"For example, Alibaba, Tencent, 360, NetEase, Sina..."
Mr. Hu, a famous financial expert, gave his own evaluation on the current Internet craze.
Seeing this, the host couldn't help but ask, "What about group buying? This new company has been in the limelight in the past two years, and now it has entered the food delivery market. Don't you think it can be a representative company of the domestic Internet industry?"
"It doesn't count yet."
"Why? This company is a unicorn in the O2O field."
Teacher Hu looked at the host and smiled pretentiously.
Why not? Because other companies are willing to give them advertising fees, but Pintuan is not willing to give them, and they even point fingers and scold them.
He has been in the "expert" industry for so long, but this is the first time he has encountered such an unyielding company.
You spend a little money and let me do some publicity for you to boost your reputation. What's wrong with that?
However, they have no way to attack the group head-on.
Because just last month, Pintuan signed an agricultural assistance agreement with five counties and is helping some fruit and vegetable farmers with unsaleable products to develop strategic plans for external sales.
Ordinary consumers may not know this, but according to industry insiders, their plan makes basically no money except for fuel costs.
Jiang Qin was not a true gentleman who had strict moral standards for himself. He just felt that this matter was in line with his own values, so he did it.
Moreover, he won’t lose.
Why? Because the group-buying ecosystem has already been established.
They may not make money from fruit and vegetable farmers, but the commission from merchants is fixed.
After buying a pound of eggs and supplying them to merchants, they are cooked into a dish and the price increases tenfold. They don't need to make any money from the bottom. They can make back the money they spent on the eggs just from the platform's commission.
Therefore, although the "experts" are reluctant to praise it, they dare not bring bad luck to the company.
The most frightening thing is that group buying is currently entering the food delivery industry, and seems to be intentionally trying to make this ecological chain longer.
Imagine what the entire group-buying industry chain will look like after it unifies the food delivery market? An egg is put in, transported, processed into a dish by the merchant, and then delivered to your home by a rider with a delivery fee. Is this egg still the price of an egg?
No, the price of the egg had increased several times in the end, but what he paid for was still that egg.
From purchasing at the source to delivering food to doorsteps, this kind of group buying is actually comparable to a money printing machine.
However, given the current situation, it is still too early to talk about unifying the takeout market. Group buying does have an advantage from the start with the help of packaging plans, clothing plans and tableware plans, but other platforms are not pushovers either.
In several rounds of takeout offensive and defensive battles, Ele.me was not the first to be hit, but seized the initiative in the college student market.
Nuomi Takeout was renamed Baidu Takeout, and the new red theme color is extremely dazzling. Its business volume and development speed are catching up with Ele.me.
In addition, there is a food delivery superstar with foreign background, which has entered the Shanghai market in a high-profile manner.
After establishing an independent branch in China, this foreign website quickly acquired "Chi Di Ma", taking the first step towards localization of the international platform.
Later, he accepted a huge amount of financing from Hurricane Capital, a veteran venture capital firm, and quickly signed contracts with 10,000 restaurants and stores.
In general, it can be summed up in one word: rich.
As the largest investor in Waimai Superman, Hurricane Capital has also attracted a lot of attention.
This is a venture capital institution under the Feng Group. Its previous investment directions were mostly traditional industries, such as real estate, cruise ships, hotels, etc.
This is their first time entering the Internet, and they didn’t expect the move to be so big.
Once the incident fermented, it also caused widespread heated discussion in the investment circle.
Then rumors began to leak out that the Feng Group's management had undergone a major reshuffle, with a new person at the helm who was about to explore the Internet sector.
Faced with the aggressive approach of foreign companies, the valuation of the takeout market has soared again.
Liu Yihua, head of Waimaicha.com China, said in an interview that they aim to serve 200 cities within a year.
In fact, they did move quickly. In just one week, they reached the scale that other websites took half a year to achieve. Of course, these other websites do not include group buying.
At this time, at the forefront of the market, a batch of low-quality takeout Superman plastic bags gradually flowed into the market. It was said that merchants who used this kind of plastic bags could receive a subsidy of 500 yuan from an unknown rich man.
"The domestic market is really very dangerous."
"I don't know why, but I felt a huge resistance during the promotion process, as if something was pushing back."
“The good news is, so does everyone else.”
“…”
As more and more platforms enter the market, the funds flowing into the market begin to expand, the number of users grows faster, and the competition for rider resources becomes more and more fierce.
Ele.me, which received investment from Tencent, once again increased its delivery subsidies, and the number of registrations surged.
This move has prompted other platforms to follow suit.
In the past, the profession of rider was still done by low-level people, such as those who could not find a job or those who quit because they did not earn enough in their job.
But with this wave of money-burning and price increases, many people who originally had jobs have begun to join the food delivery army in their spare time, and some of them are even in the system.
Jiang Qin is very happy to see the market becoming more and more prosperous.
The cake is bigger.
During this period, the entire food delivery market burned through almost tens of billions of dollars.
Just imagine, if it weren’t for this kind of competition model, which company could afford to support such an industry? Group buying can’t do that, so Jiang Qin didn’t dare to leave early. Alibaba and Tencent are so big that they are actually a bit overwhelmed in such a money-burning field.
This thing requires everyone to work together.
"Boss, the number of our riders has been decreasing in recent days. The main reason is that those websites are cracking down too hard. They are really annoying."
“Has it affected the group-buying takeaway business?”
"Shanghai and Kyoto have a large number of orders and a fast growth rate. Our number of riders is obviously insufficient. If this continues, it will definitely have an impact."
Jiang Qin listened to Tan Qing's report and tapped his fingers on the table: "How much did they increase the delivery subsidy?"
Tan Qing flipped through Ye Ziqing's report and said, "The delivery subsidy has increased by two to five yuan, but the effect is really good. Some small platforms that can't find investment institutions have been burned to death in recent times."
“Can I check the business volume of each platform?”
"We can estimate that as long as Burger King provides the takeaway data for the past three days, we can roughly analyze the order volume of each platform."
Jiang Qin pursed his lips and said, "It's definitely not possible without bleeding. You should contact Xu Yu and calculate the cost of their delivery fee."
"Boss, do we have to burn money too?"
"If a large number of riders leave, the speed of accepting orders will decrease, which will not only affect the user experience, but also the reputation of the platform. This matter will be difficult to make up for later. However, we have to find another way to burn this money, so I need to know the total amount."
"Okay, I'll do it now."
After hanging up the phone, Jiang Qin began to think continuously.
Spending money requires skills. If you spend about the same amount as others, it may not be effective. You have to spend more than others to see immediate results.
But if you burn too much, the cost will increase rapidly.
Therefore, Jiang Qin plans not to change the amount of money spent, but to change the way of spending money.
Jiang Qin turned to look at Lao Cao: "Brother Cao, the market is burning money right now, what do you think we should do?"
Cao Guangyu straightened his chest instantly: "You finally know how to ask me for advice. Then according to my opinion, you should also burn money, so that they can know what it means to burn money."
"I mean, what if I can't afford dinner? Can you treat me?"
"Treating you? I just bought a Fire Qilin. I'm totally broke this month. Can't you see I've been eating instant noodles for three days? I'm still treating you?"
"It's okay if you don't have money. You can become a food delivery driver to support me."
"????"
Jiang Qin patted his shoulder and said, "It's time to test the relationship between uncle and nephew."
Cao Guangyu turned his head mechanically: "You have a rich woman in your family, ask her to support you!"
"no."
"Why?"
Jiang Qin pursed his lips and leaned on the table in the dormitory: "Just friends."
Cao Guangyu was silent for a moment: "Find a scrap recycling station and sell your mouth. Considering your hardness, it must be worth a lot of money."
(End of this chapter)
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