Chapter 306: Li Yanhong: How Can You Compare with Cheng Wei

How are the operational strategies of these two so identical?

High subsidies and red packet interactions are things Kuaidi Dache has already done; content marketing and cross-platform cooperation also copy Cheng Weixing's playbook.

Li Yanhong looked at Xiang Hailong with an displeased expression, secretly annoyed in his heart: I promoted you not to copy Cheng Weixing; you must have some ideas of your own!

As Xiang Hailong was speaking, he glanced at his boss's expression, felt his heart 'thump' in his chest, and immediately changed his tone: "Bind payment scenarios and combine them with electronic map services; rely on the high-frequency navigation function to increase exposure and orders for Didi Dache;

Fifth, optimize the product experience and enhance user stickiness; improve order matching rates through data analysis, reduce the empty-running rate of drivers, and implement features like voice input and deposit mechanisms to improve order acceptance efficiency.

For the passenger side, strengthen positioning accuracy, reduce driver refusals, utilize red packet sharing functions to create social propagation methods, and lower customer acquisition costs..."

Hearing this, Li Yanhong's expression brightened slightly, and his furrowed brows relaxed.

After Xiang Hailong finished his report, Wang Jin proceeded to supplement the progress on the reconstruction of the Didi Dache software and the direction for improvements in product functions.

"For the North China market plus six cities in Huadong, what is the approximate daily marketing budget?" Li Yanhong pressed on.

"Between 10 million and 12 million." Xiang Hailong took a deep breath and answered uneasily.

From an operational strategy perspective, he and Cheng Wei were almost indistinguishable.

He showed not a shred of business talent, merely throwing money around indiscriminately.

Three hundred million a month?

Li Yanhong's breath hitched, and he felt a tightness in his chest.

Combining ride-hailing, group buying, food delivery, and map services can indeed create synergies in traffic and commercial monetization, completing the O2O strategic layout for Qian Du's LBS division.

But the problem is that the pioneer of this model is Senlian Capital; Qian Du is the imitator, and to gain more market share, the capital consumed is an astronomical figure.

Passengers have no loyalty to ride-hailing platforms; once subsidies stop, their affection drops to zero.

The business model is good; the only drawback is that it costs too much money.

Even Li Yanhong, facing a monthly loss of 300 million, couldn't help but feel a silent sense of awe.

Ping An and Temasek Capital both expressed investment intentions toward Didi Dache, but these two companies required Li Yanhong to complete the merger with Kuaidi Dache as soon as possible.

To put it plainly, investing money is fine, but you, Li Yanhong, cannot treat it as blank paper to burn.

As for the merger?

Chen Yansen won't agree either!

"The Series E financing for Didi Dache will be exclusively invested by the group; do not worry about funding shortages. Accelerate the pace of city expansion, build up the scale, use subsidies to rapidly close the gap with Kuaidi Dache, then gradually reduce direct subsidies and shift to indirect incentive policies such as points and shopping vouchers, transitioning from a subsidy war to rational competition!"

Li Yanhong looked at Wang Jin and Xiang Hailong and instructed them with concern.

The two nodded repeatedly, instantly feeling immense pressure.

Without the intervention of third-party investment institutions, the group exclusively holds the equity transferred in the Series E financing; although the shareholding ratio has increased, every day the company's money is being consumed, and the big boss's demands will be even more harsh.

"Go get to work," Li Yanhong said, waving his hand.

In his view, Didi Dache's current market share is only twenty percent, mainly because the area covered by its service capacity is too small; once it enters the Huadong, Central China, and Huanan markets, raising the daily order volume to over 3 million, it is uncertain who will ultimately prevail.

He did not believe that Qian Du could not defeat Senlian!

At the same time, after learning that the order data for Qian Du Food Delivery on its first day of launch had easily surpassed 30,000, Wang Xin, despite being extremely displeased, had to admit it.

In front of the giants of BAT, Meituan is completely insignificant!

It took him a week to get Meituan Food Delivery's daily order volume to 30,000.

Now that Meituan has sufficient delivery resources, it faces the problem of insufficient business volume.

The riders he painstakingly cultivated have either jumped ship to Kuai Pao or are running orders for Qian Du Food Delivery.

After all, all riders are affiliated with third-party companies, having no connection with Meituan; this saves labor costs and facilitates management, but it offers no binding force over the riders.

"Meituan Food Delivery has already perfected its business processes in Yanjing and can now expand outward."

Wang Xin said to Wang Huiwen.

If it remains trapped in one corner, Meituan's food delivery business cannot grow and become strong.

Especially after securing 75 million US dollars in financing led by General Atlantic and Sequoia Capital, Wang Xin's ambition expanded rapidly, preparing to compete with Qian Du and Senlian Capital in the group buying and food delivery sectors.

"South or North?" Wang Huiwen asked.

Going south means heading to Huadong, Central China, or even the Huanan region; going north means choosing only Northeast China.

"Go North!" Wang Xin said calmly.

He wanted to temporarily avoid the锋芒 (sharp edge), first capturing the Northeast market that no one was paying attention to; the larger the scale, the greater the speaking power, and only then could he win the favor of venture capital institutions.

This strategy was consistent with the tactics used in the group buying sector; he was very familiar with it!

It was also Meituan's comfort zone: first focusing on third- and fourth-tier cities, then later attacking first- and second-tier cities, winning through the advantage of scale.

However, Pei Yi kept a close watch on Meituan's movements; as soon as the plan to conquer the Northeast food delivery market was finalized, the complete content appeared on his desk.

"Going to the Northeast?"

Pei Yi snorted coldly, planning to advance on all fronts simultaneously.

He wanted to develop the Huanan market, and he could not abandon the Northeast market either.

"Wait until the QR code verification function goes online, and you won't even be able to keep your market share in the group buying business; you still want to fight Kuai Pao for market share in the food delivery sector? It is sheer wishful thinking!"

Pei Yi put down Meituan's market plan and muttered quietly.

On September 6, SF Express announced that it would officially launch electronic waybill technology after September 15.

The next morning, thirteen courier companies including Tian Tian, Guotong, and Guofeng successively joined the Yunsu Express Alliance, sharing data interfaces with Yunsu, while Yunsu's price was: authorizing the electronic waybill technology to each courier company for use at a price of one cent per parcel.

After Ma Liyun learned of this, he urgently called the heads of Tian Tian and Guotong, but their response was: "We will definitely join Cainiao Logistics, but Mr. Ma, do not stop us from joining the Yunsu Express Alliance."

These fence-sitters lean whichever way the wind blows!

Although Ma Liyun was furious, he was helpless; he had only signed cooperation intentions with Tian Tian, Guotong, Guofeng, and other companies, not exclusive agreements, so he had no right to restrict the actions of these courier companies.

The most troublesome part was that Yunsu's electronic waybill technology had already been patented, named the "Patent for Electronic Ticket Information Processing Method, Device, and Electronic Equipment," with an application date of May 2012.

This technology is not difficult; the difficulty lies in promotion. Just like the Windows and Android systems, does it mean that billions of people worldwide cannot develop a brand new operating system?

Of course not!

Microsoft and Google adopted a differentiated operation strategy of free as the main approach and paid as the supplement, bringing most countries and regions into their service scope, thereby cultivating a huge market, software ecosystem, and application developers.

Even if a mobile operating system with performance superior to Android appeared, promoting it would be extremely difficult.

This is also the key reason why Chen Yansen is eager to develop a self-researched system.

The smartphone market in 2012 was not yet saturated; the domestic smartphone share was only around 30%. Launching AuroraFutureOS into the market at this time would make it easier to turn the situation around.

Although the Android system is strong, iOS managed to tear a hole in it; naturally, AuroraFutureOS can do the same.

Ma Liyun took out his phone, wanting to call Chen Yansen to question him, but he soon gave up on this idea.

As a businessman, some words are best kept in the heart; once spoken, they change flavor.

If the Cainiao Logistics plan is to proceed smoothly, it cannot do without electronic waybill technology.

In other words, he still has to beg Chen Yansen.

Unless they bypass the patent restrictions of Yunsu Express, Cainiao Logistics can only use traditional paper waybills.

After pondering for a while, Ma Liyun finally dialed Chen Yansen's phone: "President Chen, I would like to represent Baishi Express and the forming Cainiao Logistics to purchase the patent license for the electronic waybill technology from Yunsu Express."

The tone of E-commerce Ma was extremely steady, showing no sign of joy or anger.

"No problem. Later, I will have the staff from the Intellectual Property Department proactively contact Mama Ali." Chen Yansen agreed readily.

Even without considering personal relationships, looking solely at business cooperation, Mama Ali and Ma Liyun had never deliberately targeted him.

One year ago, through equity exchange, they joined forces with Augusta and Rakuten Capital to spend 20 billion Chinese Yuan to buy Fox Tao.

Afterwards, they successively invested in Kuai Pao and Kuai De Dache.

If it were not for Pin Bai, his relationship with Mama Ali would not be worse than that with Penguin.

Moreover, forcing Ma Liyun to the opposite side of Senlian Capital would bring him no benefit either.

Anyway, in the e-commerce field, Pin Bai has always been low-key, only high-profilely participating in the 418 Home Appliance Festival, and did not, like Liu Qiangdong, frequently shout slogans such as "Surpass Mama Ali in five years."

In a sense, Mama Ali and Pin Bai are peers, are competing products, but are not enemies.

That Jingdong, which repeatedly claimed it would pull Mama Ali down from the number one spot in the industry, is the enemy of Ali Baba.

Although Pin Bai's threat appears greater.

"You agreed?" Ma Liyun asked subconsciously.

He did not expect Chen Yansen to agree so readily; he had thought he would need to offer some exchange conditions to get it done.

"Mama Ali is an important partner of Senlian Capital; there is no reason why Shunfeng, Tian Tian, and Guotong Express can all get patent licenses, yet only Mama Ali is excluded?"

Chen Yansen sat on the sofa in his office and joked lightly.

After hearing this sentence, Ma Liyun's anger instantly subsided by fifty or sixty percent; the corners of his mouth involuntarily rose slightly, wearing a faint smile: "Kuai Pao has invested heavily in the group buying and food delivery industries. When will the Series B financing start?"

The implication was that Mama Ali remained a supporter of Senlian Capital in the local life sector.

"Let's talk after the Internet Conference ends." Chen Yansen casually mentioned a time, pushing it back by a few days.

Kuai Pao's Series A financing, from institutions including Mama Ali, Penguin, Jin Sha Ventures, and Gao Ling Capital, totaled 180 million US Dollars in funding.

Except for the consumption of less than 10% during the competition with Ele. me.

In the past three months, opening up the North China, Huadong, and Central China markets actually did not consume much; the remaining funds are sufficient to support Pei Yi in completing the expansion of the Huanan and Northeast markets.

Moreover, Qian Du and Meituan Food Delivery have not yet stepped out of Yanjing, while Kuai Pao's business in other regions is in a profitable state, contributing a net profit of around 2 million daily.

Therefore, Chen Yansen was not worried about Kuai Pao's funding issues at all.

"Okay, then we will meet again in Yanjing." Ma Liyun said with a smile.

Chen Yansen exchanged pleasantries for a few moments and then pretended to inquire about the progress of the Cainiao Logistics project.

Ma Liyun's face turned black, but he did not avoid the topic; instead, he spoke ambiguously, saying that funds, venues, and partners were all under negotiation.

Chen Yansen thought: You are so slow; you can only eat dust behind me.

The Yunsu Express Alliance was established first, and Cainiao Logistics was established later; others will only say that Cainiao is a copycat.

Ten minutes later, Chen Yansen hung up the phone.

Since Old Ma did not choose to tear up the face, he certainly would not actively flip the table either.

Forcing Mama Ali into a corner would bring him no benefit.

"Although Kuai Pao and Kuai De Dache do not lack money for the time being, financing must continue, at the latest by the end of the year."

Chen Yansen narrowed his eyes slightly, pondering silently.

Whether it is Penguin, Mama Ali, DST, or Huake, Huaxin, and China Merchants, they must use equity to deepen relationships and bind them.

The sunk costs ahead are high enough that investors like Penguin and Mama Ali dare not easily give up on Kuai Pao and Kuai De Dache.

In the following days, Chen Yansen spent the whole day pulling Wang Teng and others, steadily pushing forward the development plan of AuroraFutureOS. The underlying architecture design was completed; the remaining compatibility solutions, graphics rendering engine, and security framework could be handled by the R&D department.

On September 10, the Kuai Pao app updated to version 2.0, adding Scan and Group Buy Code functions.

The verification method in the group buying industry changed drastically in an instant.

Merchants and users, after trying it out, immediately discovered the convenience of the Group Buy Code.

Under the promotion of the Group Buy Code, Kuai Pao's group buying business grew extremely fast, rapidly approaching the market share of Laoshou Wang.

(End of this chapter)