Chapter 138: Hummingbird and Jingdong move forward hand in hand

"Jingdong Liu Qiangdong."

"Qingyun Li Zehua."

"This is the first time we meet, please give me your guidance."

During the intermission of the meeting, Li Zehua went out and happened to see Dong Ge arranging a new meeting room for Gaoling Capital.

The latter also needs time to evaluate the feasibility of the plan. After all, it involves an investment of tens of millions or even hundreds of millions of dollars, so it is impossible not to be cautious.

Brother Dong is the kind of person who has a very honest smile and makes people feel trust in him involuntarily.

Of course, a man who can say that if he loses control one day he would rather sell all his shares is very strong-willed at heart.

"How many days will Mr. Li stay in Yanjing this time? I have a friend here too and I want to meet him."

Liu Qiangdong was talking about JD.com’s angel investor, Xu Xin of Tomorrow Capital, who is a major shareholder of JD.com and is very interested in what happened today.

I called specifically to ask Liu Qiangdong to help me make the connection.

Li Zehua did not refuse. "Two or three days, after finishing things here, go to eastern Guangdong."

The situation in eastern Guangdong is more complicated. The fact that the battery disappeared out of thin air alone is enough to cause a headache.

But right now, he wanted to discuss express delivery business cooperation with Liu Qiangdong, so he took this opportunity to extend an invitation.

The latter was also very curious.

What is going on with this Qingyun Asset Management Group in Shanghai?

Is Fengniao Express, which was involved in the brawl on Fenglin Road, also owned by them?
After entering the office together, the two men, both of whom were very tough at heart, almost got into a quarrel during their first confrontation.

"Let Hummingbird handle part of JD.com's in-city logistics and delivery? That's impossible."

Liu Qiangdong was very determined to build his own logistics, and even the company's continuous losses did not change his original intention.

Suddenly hearing that Hummingbird wanted to join in to share a piece of the pie, he shook his head repeatedly, "This involves the principle of corporate development, there is no room for negotiation."

"Don't be so quick to refuse."

Li Zehua seized the opportunity to introduce the advantages of the Hummingbird, but the opponent remained unmoved.

He didn't give up, "What about buying shares?"

Liu Qiangdong was even more resistant. “It costs a lot for JD.com to build its own logistics, and we don’t have the spare money to invest in Hummingbird for the time being.”

In fact, he was quite tempted, but when he heard that Yuantong Yunda was already a shareholder of Hummingbird, and knew that JD.com would not be able to gain dominant control, he lost interest.

Anyway, just give him some time and he will be able to get it done slowly. Why bother getting distracted by other things?

Li Zehua smiled and said, "Mr. Liu, you misunderstood. I meant to invest in JD.com so that we can advance and retreat together!

Fengniao and JD.com hold shares in each other and form a strategic partnership. Does this make you feel more at ease?

As for the strength of Hummingbird, words are not enough. When I have time, I would like to invite Mr. Liu to Shanghai for a personal visit.

Look at our core competitive advantages in express delivery that others do not have.”

Liu Qiangdong looked at him suspiciously, "I'm not worried about Hummingbird's strength, but where can you get so much money?
Strategic partnership is no joke. You are looking for venture capital financing now, so how can you invest in JD.com?"

The Hummingbird, which became famous in a battle on Fenglin Road, is now well-known. Liu Qiangdong also asked people to inquire about it. The more he learned about it, the worse it felt.

This thing is developing in the direction of a platform. If we allow it to expand, won’t the threshold for online shopping become lower and lower in the future?

The more powerful the hummingbird, the more vigilant he becomes!
As for Li Zehua's investment in JD.com, it sounds unreliable at first glance. JD.com's turnover in the first half of the year was over ten billion, while the other party probably did not even have 100 million.

Judging from the way he is dressed, he doesn’t look like a rich second-generation!

Li Zehua smiled confidently, "There is always a way to deal with money!

Let’s put this aside and talk about JD Logistics and Hummingbird Express themselves!
In terms of urban logistics, Fengniao can cooperate with JD.com's same-day delivery strategy and accept JD.com's assessment services throughout the process.

If the cooperation is successfully achieved, it will bring huge benefits to JD.com. It is equivalent to adding thousands of on-call personnel to every major city.

Not only that, we are also considering expanding across the country in the next year, striving to have Hummingbirds in all large and medium-sized cities!

By then, JD.com only needs to build its own warehouses and train its core team. All core assets will be in JD.com’s hands, and Hummingbird will not pose any threat to JD.com at all.”

Liu Qiangdong nodded. "It sounds quite advantageous, but what do you want?"

The more this happened, the less he believed it.

Are there still fools in the world who work for free?

"Delivery is not my main business, eating is!"

Li Zehua's face was full of sincerity. "You may not believe it, but the original intention of Fengniao Express was to provide food delivery services and reduce costs!

I never thought that I could achieve this level today, so as long as you give me a nod, Fengniao Express employees can deliver JD.com packages tomorrow."

"Make it up, keep making it up."

Liu Qiangdong didn't believe a single word he said, including the punctuation marks.

Would someone who sets out to build a platform in the first place not consider the long term?

I don’t even believe it!

However, he was more direct, "I don't believe it. If Hummingbird continues to develop in this way, it will sooner or later become a monopoly. JD.com cannot tolerate this happening.

We are an e-commerce platform. Product quality and price are very important, and offline services are equally important.

If what you said is true, and Hummingbird continues to build its team in this way, no express delivery company will be able to compete alone.

By then, the market is not up to you.”

It's a headache, and there's no good way to stop it.

Li Zehua smiled and said, "So, I came to see you, Mr. Liu!

Speaking of Fengniao's financing, it started earlier than Chimo. It has currently obtained 1800 million, plus the first round of investment in mutual shareholding.

We have reached a strategic cooperation with three express delivery companies: Yuantong, Yunda and Huitong.

We have also established contacts with Zhongtong, Shentong, SF Express and other companies, and cooperation is under intensive negotiation.

JD.com is also a partner that we are planning to focus on. Doesn’t Mr. Liu want to save some time and costs?”

Liu Qiangdong was very annoyed by this feeling, as if he was being forced to make a decision.

But he did not get angry. Instead, he chose to continue asking for details. After he fully understood the operating model, he was extremely depressed.

This is simply aimed at the vital point of JD Logistics!
If Hummingbird can really do it, even if it is only half as good as the service they promised, the underlying logic of the entire e-commerce circle will inevitably change.

Why did he risk his life to build his own logistics system?
The goal is to create a gap in service with our competitors!

Now that Hummingbird has arrived, it often requires thousands of people to deliver goods in big cities. It sounds like this is not the limit.

He has no money but he still hires so many people? !

There are two top venture capital firms right next to us now. If Chimo develops smoothly, there will be more people coming to the company in the future.

The more people eat, the more part-time employees there will be at Hummingbird Express.

Service service!

It's not something that will fall from the sky just by moving your lips.

But it is achieved by people who rely on their own two legs and run around in the market!
Currently, most express delivery and logistics companies are failing because their services cannot keep up. The emergence of Hummingbird is equivalent to filling the last three kilometers.

No, it is to fill the last mile and directly eliminate service shortcomings.

Can JD.com defeat all express delivery companies combined?
At this moment, his determination to build his own logistics was somewhat shaken!
But he soon regained his confidence, even going a little overboard, "Hummingbird, are you selling it? Name your price!"

Li Zehua was stunned. "No~ Mr. Liu, are you kidding me?"

Liu Qiangdong shook his head, "No kidding, are you selling the Hummingbird?"

"Are you serious?"

Li Zehua looked at his expression carefully and it didn't seem fake!
I was very puzzled and explained, “It’s meaningless to simply buy Hummingbird Express!

The current post-investment valuation is 3.6 million. Just now, the neighbor offered 1500 million US dollars to invest in %, but I didn’t agree. If you acquire it, you will definitely increase the price several times.

Besides, it doesn't have many people. It is the deliverymen and couriers who work part-time that form a service network that covers the whole country.

Even if you buy Hummingbird Express, I can still open another one, so why bother? "

We were discussing cooperation, but the other party started talking about acquisition right away. What kind of confusing operation is this?
"More than a billion?!"

The prices for acquisition and investment are definitely not the same. If the other party doesn't want to sell and you force yourself to buy, you will have to accept an extremely high premium.

Liu Qiangdong thought about it and it made sense. He felt even more distressed. Why did this bastard set up such a business?
Hummingbird!

It is far more threatening than the Cainiao Station in later generations.

The Cainiao model is more like Taotao, which relies on the advantages of upstream e-commerce platforms to coerce and force express delivery companies to submit to it rather than integrating express delivery resources.

If you really want to provide services, why have so many franchisees?
Didn’t you see that after SF Express and JD heard about it, they immediately ran away without even looking.

But Hummingbird is completely different. It complements Chimo. Large packages may not be able to be taken along, but small items are completely compatible.

Moreover, the express delivery and takeout delivery are done by one company. In the subsequent plans, it is implemented in key stores, key areas where outsiders rent houses, key commercial areas, commercial streets, industrial parks, etc.

Special personnel will be assigned to be responsible for one area. They do not need to run around and can just focus on terminal services.

Takeaway and express delivery are delivered to the area, and the orders are directly transferred to other people for delivery, because there are enough orders to support more grassroots service personnel. Li Zehua said all these, because JD.com can't do it!
Not to mention now, even in 2024, fifteen years later, JD.com would not dare to boast that it would arrange a site in each community and do nothing else but serve this community.

Then JD Logistics has not just hundreds of thousands of people, but hundreds of millions. The five social insurances and one housing fund alone can eat up all of JD’s annual profits.

This is a blatant conspiracy, there is no solution!

Unless JD.com not only builds its own logistics, but also builds its own catering delivery team, and competes with Chimei in all aspects!
is it possible?
Do you really think there is no competition in e-commerce?
What's more, building its own logistics would take up too much of JD.com's funds, leaving it with no spare energy for anything else.

Liu Qiangdong, who had figured everything out, was helpless. "Your business logic is too perfect. In just one industry, there is no advantage in competing with you. You beat Hummingbird, but you can't beat it.

If you enter the food delivery industry and earn money but are unable to provide corresponding welfare benefits, all the money you invest will be wasted.

I am sure there must be a secret exclusive agreement in the contract you signed with the courier company!"

Li Zehua did not refute, which was considered as tacit agreement, "I also promised all express delivery companies that I would never build cross-regional logistics by myself.

This is clearly written into the contract!"

This seems to say nothing, but it actually says everything.

The rights and obligations are equal, and Fengniao Express does not build its own cross-regional logistics.

The cooperating courier company cannot find a second food delivery company. The liability for breach of contract is very serious, so serious that no one dares to break off relations easily.

More importantly, express delivery companies have tasted the sweetness, and they can’t stop enjoying the joy of reducing costs and increasing efficiency. Why should they leave Hummingbird?

That would be worse than killing them.

This makes it almost invincible for Chimoyni and Hummingbird.

Any competitor entering this industry will end up being treated like a fool.

Because it is just a food delivery service, the order volume is there, and if it wants to compete with Chizuome in service, it is necessary to maintain enough delivery staff.

Once the scale is large, the expenses will become a bottomless pit.

After eating it, you will naturally have an extra income as a courier, and your salary will be an extra thousand yuan a month, which is a huge difference for grassroots workers.

You're doing the same hard work and you've earned so much as a thousand dollars, why don't you just run away?

What can competing companies do?
Chimome is already one step ahead, so if they want to catch up, they have to spend a lot of money to poach merchants, advertise, and subsidize customers.

All of this depends on the riders to provide services. Without a stable team, everything is empty talk.

subsidy?

Subsidizing the riders with a thousand yuan every month, what's the point of that?

What if he is lucky enough to become the second in the country and have hundreds of thousands or millions of riders, and provide them with hundreds of millions of subsidies every month?

Capital's money doesn't come from the wind. They want to make money and not do charity. Isn't that nonsense?

Outsourcing?

Even more ridiculous, what the hell is that?
First, we cannot control the quality of service, and second, we cannot control the timeliness. Especially as an industry follower, doing so is seeking death.

You don’t even need to do anything after you’ve eaten it. Just wait for your competitors to burn through all their money and go bankrupt, and then you can just take over the market with a smile.

Unlike those who work in venture capital and capital operations, the down-to-earth Liu Qiangdong sees things more clearly and thoroughly, which is why he is more distressed.

I see it all, but I can't do anything about it.

"Let's talk about your investment in JD.com and my investment in Hummingbird."

When doing business, harmony brings wealth!

Since there is no way to kill the other party, cooperation becomes the best option.

Through chatting with him, Li Zehua increasingly understood his own advantages, and he would be more confident when talking with venture capitalists later.

However, he also had his own comprehensive considerations for JD.com, and asked tentatively, "Brother Dong, I heard that JD.com raised more than 2000 million US dollars at the beginning of the year.

The performance in the past few months has been very impressive. How much do you think you can get with the same amount of money now?"

Liu Qiangdong was very honest, "They initially received more than 2 million additional shares, and now if you enter the market and invest, you will be given at most one-third of the money.

But can you take it and eat it? In exchange for the shares of Hummingbird, I can give you more."

Li Zehua refused, "Chime is a food delivery platform, which has nothing to do with JD's business!"

Liu Qiangdong sneered, "Without the hummingbird that has been enhanced by eating, it is not so powerful at all. Its roots are being eaten."

"Don't worry about it."

Li Zehua said seriously, "Qingyun Asset Management has already made reasonable arrangements with Chichime Catering Management and Fengniao Express, and the two parties have signed an exclusive cooperation agreement for 20 years.

You don't have to worry about this at all. Fengniao Express's model is one regular employee and five part-time employees. Isn't that enough to reassure you?"

"Don't worry, I didn't say that."

Liu Qiangdong remained unmoved and insisted on his choice, "What if one day you become powerful enough?

Unify the city's delivery, abandon Fengniao Express, and use the original part-time staff to create another similar platform. Who can stop it? "

There is no such thing as betrayal, it just depends on whether the chips for betrayal are enough.

Unifying the national logistics and express delivery industry, the temptation is big enough!

"Don't think about rejecting me. The current Hummingbird is not strong enough. You need the order volume from e-commerce!"

Liu Qiangdong hit the nail on the head, "Although Chimome is the only dominant player, the upstream of the express delivery industry is controlled by e-commerce companies, and Taobao is not so easy to talk to."

“It hasn’t come to that.”

Li Zehua spread his hands and said, "Besides, with so many express delivery companies around, Taobao doesn't dare to ban Fengniao easily.

There is room for negotiation. At the very least, I will give up my controlling stake. Taotao has money anyway, so as long as the price is right, there is nothing we cannot negotiate.”

Just kidding. By the time Taotao takes action, Hummingbird will have grown into a giant. Coupled with the group buying plan of Pinxixi, he will not be afraid no matter what.

At worst, Hummingbird and Rookie will go to war and everything will turn into a mess. Who is he afraid of in a competition of service?
These are all things of the future, but for now it won’t stop him from using this to pressure JD.com.

For example, “Mr. Liu, I remember that JD.com worked very hard to build its own logistics in order to better serve customers, right?

If JD.com doesn't invest in Fengniao at this time to seize the layout and wait for Taobao to take control in the future, then what is the point of building your own logistics?"

Look at what this is talking about!

After hearing this, Liu Qiangdong wanted to hit someone!

Fortunately, I have high quality and can endure it.

"Don't talk nonsense. You came here just to negotiate. Although JD.com is a little small, it is also a member of the e-commerce circle. Name a price."

Hummingbird already has so many strategic allies and is favored by venture capital. It cannot be defeated by fighting, so it must join.

We must not sit idly by and watch Hummingbird fall into the hands of Taotao, otherwise does JD.com still have a future?

Li Zehua finally breathed a sigh of relief, "Great! 10% of Fengniao Express's shares plus 10 million US dollars in exchange for % of JD.com's shares."

"This is impossible!"

Liu Qiangdong almost jumped up, "5% at most, no more."

Asked to keep quiet, Liu Qiangdong explained helplessly, "I had no experience in the first round of financing, so I raised more than 100 million redeemable and convertible shares, which were only worth 10 million US dollars.

The second time was US$2100 million and more than 2.3 million shares, which were also redeemable and convertible.

You are asking for 10% now. If you keep going like this, I won't even get the controlling rights. Not only will I be working for nothing, but if there are disagreements on corporate development decisions in the future, who will listen to you or me?

I just have one thing to say, you can cooperate with me, but the controlling right must be in my hands, otherwise I would rather sell JD.com!
Otherwise, if you guys destroy JD.com one day and ask me to pay you back by converting bonds, what will I use to pay you back? "

He became more and more excited as he spoke, and Li Zehua was helpless, "This 5% is really insincere, and I don't understand your redemption and transferability.

Be straightforward. I want shares directly. It’s not for interfering with JD.com’s development. The better you develop, the more beneficial it will be for Hummingbird Express.

Our two companies truly complement each other's strengths!
No matter how you look at it, I can't do anything bad on purpose. I came all the way from Shanghai to Beijing to find you when I needed to buy computers."

"That's impossible!"

Liu Qiangdong refused to give in. "Even if I directly issue you additional shares, it's impossible for you to have 10%."

Then he calculated the accounts for him, "You said that Yuantong Yunda invested 1800 million and gave them 20% of the shares. So the valuation of Hummingbird is about 3 million.

At present, JD.com is at least ten times the size of Hummingbird, so 10 for 1 is fair!
If you pay another 5 million dollars, I can give you % at most."

Li Zehua also became anxious. "You got 2100 million in financing before the New Year, and others took dozens of percentage points, but I don't even get one-fifth of it. Isn't this a joke?
Could it be that in half a year, JD.com's valuation has increased more than ten times?"

Liu Qiangdong was shocked. "How did you know this?"

The total shares of JD.com Group have not been disclosed. How did Li Zehua know it?
Of course, we learned about this from later generations.

Li Zehua waved his hand and said, "Don't worry about that. We are talking about this now. 10%, can we do it?"

　Currently, there are only over 300 average subscriptions and 5200 collections, which is less than 10 to 1.

　　Update plan: there will be three updates on May 1st to ask for monthly votes, and there will also be three updates on the last day of May 1st, and there will be a double activity.

　　The goal for May is to exchange one thousand monthly tickets for cash, or the average subscription exceeds 600, with an additional 2000 daily subscriptions, and continue to update words per day until completion.

　　Otherwise, I can only do part-time work to support the family.

　　I type for fifteen hours a day, and when I see that I only earn 60 yuan, I'm about to collapse, please!

　　
　
(End of this chapter)