Chapter 158: Three Years and $30 Billion

Monday, April 1th.

Didi Kuaidi formally submitted an application for a merger and acquisition transaction to the Ministry of Commerce. On the same day, the Uber China APP was approved and launched, and simultaneously opened three pilot markets in Beijing, Shanghai, and Shenzhen.

When Didi announced that the "10 billion subsidies" would become a normal practice and mobilized its elite marketing team to increase the intensity of subsidies in an attempt to encircle and suppress the market.

Uber China chose to use technology to attack high-end private car travel services using marketing data models accumulated from profitable markets around the world.

Uber has signed contracts with many car rental companies, raising the average monthly subsidy for drivers to 6000 yuan. A registered Uber China driver can earn over yuan a month if he works casually, and can potentially earn yuan a month if he works harder.

Cheng Wei was indifferent to this. In the previous few months, Didi Kuaidi's competition has always been centered around the mid- and low-end markets, using an extreme strategy of expanding volume.

It was not until UCAR entered the market and used its own advantages to attack the high-end private car market that it was able to devote its energy to keep up with the development of the high-end private car market.

In this part of the market, Didi and Kuaidi have no advantages over Uber.

Moreover, Xie Jingxing said that China is China. With a population of more than one billion and a per capita disposable income of tens of thousands of yuan, it is destined that successful market experience from foreign countries should not be used, and it must learn to localize in China.

As long as Didi can firmly hold on to the mid- and low-end markets, it can fight Uber till the end of time.

Therefore, although the two sides made sparks in their public statements, their actual actions did not produce the kind of collision between Mars and the Earth that the general public would like to see. For the time being, it is equivalent to a staggered and differentiated competition.

On the contrary, UCAR and Yidao Chuxing suffered great difficulties. The former was only hanging on by a thread thanks to its listing on the Hong Kong stock market this year, but was severely beaten in the low- and mid-end market by Didi and Kuaidi, which together account for 90% of the market share.

Lu Zhengyao stopped pretending to be cool and shouting slogans to start quickly at all costs. The basket is bleeding and enduring humiliation, actively waiting to be embraced by the capital market.

When faced with the promotional soft article that Uber China drivers can earn up to 20,000 yuan a month, Zhou Hang had no confidence to say the sentence "our drivers have a guaranteed monthly salary of 20,000 yuan" that he used to confront investors.

He also didn't have time to figure out what kind of perfume to put in the company bathroom or what blues or country folk playlist to let the driver listen to.

Pulling my hair under the covers late at night, I found that the first company to be beaten when UCAR entered the market was Yidao, and the first company to be beaten when Uber came in was still Yidao!

No good person can stand such a cruel punishment. They will accept financing by pinching a hair, and then pinching a hair again to stick to the idea of ​​not over-financing.

Finally, Zhou Hang looked at the pillow of hair and made up his mind. He gritted his teeth and posted on his Moments saying that the world is so big and he wanted to go see it.

To put it in human terms, he wants to lead Yidao to go abroad, with the first stop being the United States, to disrupt Uber's stronghold!

"From this perspective, the only company that Uber can acquire in China is Yidao. Didi and Kuaidi do not fit its business strategy."

The tiles of the courtyard pavilion were covered with unmelted snow, and the sunlight shone through the dead branches of ancient trees in the corners of the courtyard wall, pouring warmth under the corridor.

The steaming water splashed into the cups and the tea fragrance overflowed. Yu Nian fiddled with the tea set with great interest: "It's a pity that Zhou Hang has his own ideals. I heard that Yidao has started looking for investors."

"If you don't move, you're going to be squeezed to death." Xie Jingxing lay in the rocking chair and yawned lazily.

Yu Nian smiled and continued to test him: "Zhou Hang is quite remarkable. Why don't you consider investing some money to diversify the risk? Now that Uber has come in, the situation is not good."

“Maybe I will invest in other online car-hailing companies, but the reason is not to diversify risks. Didi will also go overseas this year.”

Xie Jingxing added in a strange tone: "And Yidao has no shortage of investors."

Deng Wei had just contacted him to talk about the current situation of the online car-hailing industry, saying that Boss Jia wanted to invest in Yidao Travel, which was about to be abandoned by Baidu, and support Zhou Hang in making it.

As for herself, she was thinking about the tourism and homestay industry, and hinted that she wanted to partner with him to replicate Bumblebee's gameplay in the online car-hailing industry, spending a lot of money to collect data and wait to be acquired by the industry leader.

These early players in the Internet video industry all have a bit of a wild approach. He is looking forward to Boss Jia being able to create different sparks with Yidao, and it would be best if they were influenced by this and started building cars sooner.

"Didi going overseas? Where do you want to go?" Yu Nian asked thoughtfully.

Xie Jingxing explained: "By going global in the form of investment, Didi will try its best to support Ubike's local competitors in all global markets, such as Lyft in the United States and Bolt in Europe."

"You can make a lot of friends, and the majority of the group can attack a small group. That's a good idea." Yu Nian did not hesitate to praise.

Xie Jingxing did not comment: "But in fact, it seems that Uber has more friends than we do."

"It's an international giant, so that's understandable. If I hadn't already invested in Xiyou, I would have wanted to talk to Uber." Yu Nian was very frank.

Xie Jingxing was speechless. Apart from the Saudi sovereign fund's special investment of an unknown amount said to be as high as US$10 billion, all other investors in Uber China were from China, including Vanke, HNA, Baidu, and a large number of national teams and domestic giants.

The damn Kalanick only paid for the Uber China brand, and he used the domestic market's money to compete with Didi in the domestic market, and during that time he even shouted "I came, I saw, I conquered".

It is undeniable that there are political considerations behind the state-owned capital’s investment in Uber, but there are definitely factors that are pessimistic about Didi as well.

Nowadays, mainstream public opinion is angrily criticizing the merger of Didi and Kuaidi for violating the Commercial Monopoly Act, while at the same time analyzing from various angles that Uber China has come and Didi and Kuaidi are doomed.

No matter what those who reluctantly stand on the side of the local ride-hailing companies say, Uber China's supporters refute it with just one sentence - Uber has prepared $10 billion in cash subsidies.

Didi has an all-star lineup of investors, and Uber has $10 billion in cash.

UCAR’s self-operated car rental business has unique advantages, and Uber has US$10 billion in cash.

Lu Chuanwei returned from Silicon Valley with advanced business philosophy and product technology, and Uber has 10 billion US dollars.

Anyone who heard the repeated mention of 10 billion US dollars was confused. Even Xie Jingxing himself did not want to take it head-on, so he developed the so-called allied strategy.

Since Uber has achieved profitability in half of the top 30 cities in the world, it will support the resistance guerrillas in enemy-occupied areas to destroy the enemy's supply lines. The core logic is the same as that of Ele.me strangling Meituan city by city.

It’s a protracted tug-of-war that will bleed Uber to death.

"Lv Chuanwei said that there are no industry barriers in the online car-hailing industry, and as long as there are people willing to spend money, there will be competition."

Xie Jingxing concluded: "After the merger, we will occupy 90% of the market share. Based on this, Cheng Wei, Liu Qing and I are mentally prepared to burn $30 billion in three years."

"You seem to be about to convince me." Yu Nian pursed her plump red lips and nodded.

Xie Jingxing sat up from the recliner: "I admit that Uber is excellent. They can push themselves to the extreme and take the market share to the top by burning money, localizing, and so on."

"But this does not solve the fundamental problem. Its huge size as an international giant is an advantage, but the same is true for its weaknesses."

He paused and emphasized: "US$30 billion. If you are an investor in Uber, even if Kalanick is willing to burn US$30 billion with us, are you willing?"

"You have burned 30 billion US dollars. How many years do you expect to be profitable?" Yu Nian put down his teacup and asked calmly.

Xie Jingxing's momentum stagnated: "Five to eight years."

"So that's it. As an investor, I definitely don't want to see Uber making profits in the global market, but the Chinese market continues to lose billions of dollars and still has no profit expectations." Yu Nian's tone was relaxed, as if he was provoking. Xie Jingxing frowned unconsciously: "If you don't have any personal opinions about me, you should be aware of the difference in value between the domestic market for Didi and Uber."

Didi can enter the smart car market from the transportation field in the domestic market, develop mobile payment financial derivative businesses, and even use huge user data to enter the local life field.

Uber China cannot do these things unless Kalanick really becomes a Chinese citizen and changes his last name to "Ka" and "Jian Guo"!
Although both have long profit cycles, the ceiling heights of the two are completely different.

"Forget it, you think about it." Xie Jingxing was not interested.

"puff."

Yu Nian suddenly chuckled, holding her chin with one hand and asked with her beautiful eyes, "What do you need me to do?"

Xie Jing Xing stared at her for a moment, then he clenched his fists and raised his arms, slowly extending his two middle fingers, then he lifted the blanket, jumped off the chair, and walked away.

"Once you leave this door, I will pretend that you have never been here today."

Yu Nian calmly explained: "In fact, I am more optimistic about Uber. Didi and Kuaidi have a 90% market share after their merger. There is overwhelming public opinion about commercial monopoly. If I don't see confidence in you, why would I help Didi?"

"So you know exactly what I want to do today." Xie Jingxing stopped.

Yu Nian shrugged: "I can help you communicate with the relevant departments and try to get the merger and acquisition approval quickly, but you have to confirm it. What if you are here to ask about my well-being and care about me?"

"..."

Xie Jing walked away, neither staying nor standing there awkwardly.

Yu Nian poured a cup of tea and said, "It's not your character to use people to your advantage and not to your advantage. Is it?"

"Haha, this tea is pretty good." Xie Jingxing laughed.

Yu Nian's smile grew brighter: "I still like your rebellious look just now. Recover a little."

Xie Jing Xing was in agony. This was his line...

It's true that you always have to pay for what you have done. Last month, Grapefruit Capital raised funds and it felt great for a while, but now it has come to retribution.

There is nothing much to say. If he makes a mistake, he should stand at attention and take the beating. He is responsible for his actions.

But what doesn't kill me makes me stronger. You'd better not fall into my hands, or I'll show off again next time!
"It's too late today. Let's have a dinner tomorrow. You guys prepare the relevant materials." Yu Nian raised it high and put it down gently.

Xie Jingxing was practicing the method of mental victory in his mind, and couldn't help but be slightly stunned: "Is it that simple?"

"I am only responsible for organizing the event. How to do it specifically depends on you. You should know from your return from abroad that the current domestic commercial monopoly law is in the experimental stage and should not be a problem." Yu Nian said leisurely.

Xie Jingxing opened his mouth: "Thank you, Liu Qing is in charge of this, she has prepared it."

"Then let's do this for now."

Yu Nian changed his tone: "Last time in Shanghai, you treated me to local cuisine. How about I treat you to shabu-shabu mutton today?"

The chef from Yudefu's kitchen brought a full set of tools including copper pots and kitchen knives, and spoke with an authentic Beijing accent. While cursing Donglaishun, he demonstrated the authentic meat-cutting skills of the Donglaishun master from the 80s, which was "standing upright on a plate without falling over."

Now dissolve the sesame peanut butter and garnish it with the chives and fermented bean curd, and light the copper pot to make it steaming hot, which matches the ancient courtyard environment.

Guo Degang's voice vaguely lingered in my ears: It's snowing heavily outside, and I have three or five chickens here...

"We should call Liu Qing over." Xie Jingxing smacked his lips with an unsatisfied look.

Yu Nian glanced at the chef who was still cutting meat: "Master, this is almost enough meat, you can take a break first."

"Okay, you two take your time eating. If you're not full, call me anytime." The chef with a mixture of black and white hair clasped his fist.

Xie Jingxing straightened up slightly and gave a thumbs up: "Thank you for your hard work. Today I can finally taste the authentic cooking skills of the old Beijing master chef."

"Hey, what are you saying? Don't flatter me. The only old BJ in our Beijing city is just a skull left, and it's in the museum." The chef said in a funny tone and left the restaurant.

When the door was closed, Yu Nian unconsciously frowned: "Are you hungry?"

"what?"

"No one takes you seriously when you play with celebrities and assistants. I heard that you had dinner with a small boss of a film and television company at the Chang'an Club some time ago. He just passed away, right?"

Yu Nian stared at him seriously, "Whether you want to choose a concubine or have something else, it doesn't matter. Tongtong doesn't care and we, as family members, will just pretend we didn't see anything."

"But Liu Qing is not okay. She is a married woman in her thirties, and her family background is still unclear. Are you about to starve to death or something?!"

Xie Jing Xing was confused for a moment after being scolded, and asked doubtfully: "Why do you think I have a relationship with her?"

"I don't want to argue with you about these trivial things. I just want to warn you not to bully others. Our Yu family is not extinct!" Yu Nian said fiercely with his eyes wide open.

Xie Jingxing made a pause gesture, threw down his chopsticks and thought for a moment before saying, "First, Liu Qing and Cheng Wei unconditionally believe me. To put it nicely, we have been through hardships together, but to put it bluntly, we came together for profit."

“Just like you don’t think Didi can beat Uber, many internal investors of Didi and Kuaidi think the same way.”

He raised his finger and pointed at himself: "It was me who made the step-by-step efforts up to today, which made Liu Qing and Cheng Wei determined to burn 30 billion in three years to fight against Uber. It was also me who made the investors behind Kuaidi choose to kick Lu Chuanwei out!"

"I never think that personal feelings can influence work. If possible, I would not be sitting here having dinner with you today. Instead, I would fly to Washington and lie in bed with Tongtong and ask her to go home and beg your grandfather."

Xie Jing Xing breathed a sigh of relief, forced a smile and continued, "Secondly, I said that Liu Qing should be invited because she is currently doing public relations for the industry's draft for comments, and is also related to the commerce department."

“I would like to ask you to discuss the possibility of policy regulations requiring online ride-hailing companies to build servers in China.”

Kalanick, a foreigner, can find ways to use policies to disgust him, so of course he, a local, can also use policies to disgust the other party.

With Yu Nian persuaded to come forward to help, and with the influence of Liu Qing, Tencent and Alibaba, Didi Kuaidi only needs to bear a little external pressure in terms of commercial antitrust involved in the merger and acquisition case.

It has been confirmed that there will be no obstacles.

It would be a waste to use such a powerful combination of policy resources only to resolve mergers and acquisitions. We can use this opportunity to promote a higher level of strategy.

Uber China, which already has a VIE equity structure, is building servers in China. Kalanick should be happy that he is one step closer to citizenship, right?

(End of this chapter)