Chapter 343: Who Doesn't Want to Be the Big Brother

"Damn! Meituan's market share is far behind Dianping. Wang Xin still wants to take charge after the merger? What a toad yawning—what big talk!"

In a private room at a club in Hu City, Zhang Tao ignored Shen Nanpeng's attempt to stop him and stepped out, his eyes blazing with fury.

"President Zhang, don't be impatient. Both Meituan and Dianping are valued at around 1 billion US dollars. Isn't it normal that we can't agree at first? Let's sit down and talk slowly; we'll surely find the best solution."

Shen Nanpeng held Zhang Tao's arm and urged him patiently.

From ancient times to the present, the vast sea of historical records contains only four words: fight to become Emperor.

The business world is no different!

As the founder of Sequoia Capital, Shen Nanpeng vigorously pushed for the merger between Dianping and Meituan, but what troubled him greatly was that both Zhang Tao and Wang Xin wanted absolute control.

From an investor's perspective, he tended to support Zhang Tao.

But Wang Xin was unwilling to give up power, making things difficult.

But in Zhang Tao's view, Meituan's valuation was about 970 million US dollars, with Wang Xin and the founding team holding 57.7% of the shares; Dianping's valuation was 1.24 billion US dollars, with his shareholding at 62.2%.

After the merger of the two, it was obvious that he should be the CEO, with Wang Xin as the underling.

The three parties talked all morning; in the end, the core issue was: who would be the big brother?

"President Shen, I have no objection to the merger, but if Wang Xin cannot see the situation clearly, this matter must be abandoned."

Standing outside the door, Zhang Tao felt the cold wind blow, dissipating much of his anger, and spoke in a calmer tone.

The implication was clear: unless Wang Xin bowed to him, there was no point in discussing the merger.

Shen Nanpeng stared at Zhang Tao for a few seconds and understood in his heart: Meituan and Dianping had not yet been forced into a desperate situation by Kuai Pao or Laoshou; no matter how many words he wasted now, it would be of no help.

"Alright, I understand." Shen Nanpeng took a deep breath and said with a helpless expression.

The second attempt to merge Meituan and Dianping, although entering the negotiation stage, still failed to reach a consensus.

Both sides parted in anger!

Wang Xin and Wang Huiwen, left in the private room, exchanged a glance and instantly read each other's thoughts: first, use money to smash the market, drive up the monthly transaction volume, and then, whether seeking financing or merging with Dianping, they would gain more advantages.

Zhang Tao refused to let Wang Xin be CEO; wasn't it because he disliked Meituan's low market share?

But in Wang Xin's eyes, Dianping's strength was far inferior to Meituan's; if not for Kuai Pao and Laoshou Wang stirring up trouble, did Dianping have the qualification to sit on the throne of the industry's number one?

"Old Wang, in terms of product strategy, Meituan must learn from Kuai Pao. Besides food, leisure and entertainment, movie tickets, and hotel travel categories, we must continuously expand business boundaries, delve into local life services, and create Meituan's own 'T-shaped' strategy."

Wang Xin casually swirled his wine glass, looking at his old friend as he spoke.

"Brother Xin, the bigger the scale we lay out, the higher the personnel costs and marketing expenses will be. I'm afraid the additional investment from Sequoia Capital won't be enough for us to last until next year's Q2."

Wang Huiwen frowned and voiced his inner concerns.

"When the cart reaches the mountain, there will always be a path. Mama Ali and Sequoia Capital have invested a total of 130 million US dollars; I don't believe Ma Liyun and Shen Nanpeng would be willing to let that money go down the drain."

Wang Xin tilted his mouth, smiling ambiguously.

The relationship between investors and entrepreneurs is both mutually beneficial and constantly filled with gamesmanship.

After several rounds of financing, he lost some equity, but the bond between Mama Ali, Sequoia Capital, and Meituan grew deeper and deeper.

The sunk costs in the early stage were as high as over 100 million US dollars; as long as Meituan persisted in fighting, Mama Ali and Sequoia Capital would have to grit their teeth and keep throwing money.

Capital hijacked the entrepreneurs, but weren't the entrepreneurs also dragging capital forward?

For example, in the subsidy war between Kuai Di and Di Di Dache, Li Yanhong, unable to find a suitable investor for a long time, finally chose to pay out of his own pocket.

"But Mama Ali did not participate in Meituan's last round of financing; I think Ma Liyun might have given up on us."

Wang Huiwen pushed up his glasses and analyzed seriously.

"Old Wang, don't worry. Since Chen Yansen's net worth of 50 billion US dollars was exposed, and with the three major e-commerce platforms achieving 30 billion in sales on Singles' Day, capital from Europe, America, and Australia is watching the domestic market. With Meituan's market position, are we afraid no one will invest?"

Wang Xin dismissed the concern.

"Brother Xin, I understand." Wang Huiwen smiled knowingly, raised his glass, and clinked it against Wang Xin's, a hint of joy flashing in his eyes.

Wang Xin narrowed his eyes and thought silently: Senlian Capital and Qiandu Wang are strong, but Meituan is not weak either; who will win and who will lose remains to be seen.

He did not believe that Kuai Pao and Laoshou Wang could swallow the entire national group-buying market.

The subsidy war cannot last long; eventually, everything must return to the essence of business, with service and quality determining victory or defeat.

Before long, Shen Nanpeng, having seen Zhang Tao off, returned.

Looking at Wang Xin, Shen Nanpeng said little, made a few perfunctory remarks, and then left with his assistant.

"I heard Kuai Pao's Hu City branch is nearby." Wang Xin suddenly asked, knowing that Pei Yi had long been stationed in Hu City.

Thinking of this, he really wanted to visit the other party's company and meet his rival.

Meanwhile.

JD. com announced externally that it had completed a new round of 700 million US dollars in financing yesterday, with investors including OTPP (Ontario Teachers' Pension Plan of Canada) and the Kingdom of Saudi Arabia Capital, with a post-investment valuation of 10.5 billion US dollars.

In just two months, Liu Qiangdong had cumulatively secured 1.1 billion US dollars in financing, and the company's valuation had skyrocketed from 6 billion US dollars to 10.5 billion US dollars.

Brokers in Hong Kong and on Nasdaq became increasingly enthusiastic about JD. com.

Liu Qiangdong, however, rejected all of them; since JD. com was not short of money for the time being, the listing plan was naturally put on hold.

The Singles' Day promotion had ended, and the Double Twelve promotion was about to begin.

After pondering for a moment, Liu Qiangdong took out his phone, found Chen Yansen's private number, and dialed directly.

On the other end.

Chen Yansen received the call from "Handsome Dong." After understanding the other party's intentions, he readily agreed: "I'll prepare a few bottles of good wine first; wait for President Liu to come and drink."

If Liu Qiangdong wanted to "offer himself for punishment," there was no need for Chen Yansen to shut him out.

Sister Chengzi Technology withdrew from JD. com; Liu Qiangdong suffered significant losses, but he also lost an important online sales channel.

Therefore, as soon as "Handsome Dong" spoke, Chen Yansen smoothly gave the other party a way out.

After all, the biggest competitor to Pinbai and JD. com currently is Mama Ali; first, bring down the market share of Tmall Shangcheng and Taobao C-stores.

"See you on Monday." Liu Qiangdong smiled and hung up the phone.

Chen Yansen put down his phone and continued to devote himself to the research and development of CPU architecture.

Not knowing how long had passed, the mobile phone on the table suddenly rang.

Chen Yansen picked it up to see it was Cheng Weixing calling, so he pressed the answer key.

"Boss, Mama Ali has entered the food delivery market." Cheng Weixing had accidentally noticed a new 'Mama Ali Delivery' channel in the icon area of the Mama Ali app homepage and immediately reported it to the boss.

Chen Yansen took another mobile phone from the drawer, opened the Mama Ali app, but did not see the corresponding channel entry; he immediately understood: it was likely not officially launched yet, currently in gray testing, and Cheng Weixing's account had just been pulled into the test group. "Mama Ali hasn't listed yet, but Old Ma couldn't hold back; he gave it a homepage resource slot right from the start, aiming for something big."

Chen Yansen said with a light laugh.

"I reminded Pei Yi," Cheng Weixing added.

"How is the expansion progress in the Huanan and Northeast markets?" Chen Yansen responded, then immediately changed the subject to ask.

"The Northeast region has an average daily order volume of 503,000, with 77,000 active drivers, an order completion rate of 85.9%, and an average response time of 37 seconds;

The Huanan region has an average daily order volume of 905,000, with 132,000 active drivers, an order completion rate of 89.4%, and an average response time of 36 seconds."

Cheng Weixing paused for a moment and said again: "Counting the Huadong, North China, and Central China regions, Kuaide Dache's daily order volume is 7.1 million orders, while Didi Dache is estimated to be just over 600,000 orders."

Chen Yansen thought for a moment; given the internet and smartphone penetration rates in 2012, the upper limit for daily ride-hailing orders nationwide was roughly between 9 million and 11 million orders.

In other words, the half-year subsidy campaign had activated almost seventy to eighty percent of potential passengers; even extending business reach to eighteen-tier small counties would not bring much incremental growth.

Nowadays, Kuaide Dache's daily platform turnover reaches 150 million Hua Yuan, the commission rate changed from 10% to 15%, monthly revenue exceeded 670 million, but due to high operating costs, the gross profit margin was less than 5%; adding marketing expenses, the Q4 loss remained around 1 billion.

To become profitable, there was still a hundred thousand miles to go.

Although Didi Dache had been very low-key in the past month, appearing as if it was not fighting or competing, who knew if Li Yanhong would start a price war again one day.

Chen Yansen chatted with Cheng Weixing for a few minutes before ending the conversation.

Mama Ali's move to enter the food delivery industry was within his expectations.

In fact, at this moment in Hangcheng, there were not only Kuai Pao and Mama Ali Delivery, but also competing websites like Ai Ding Fan and Dian Wo Ba.

After Kuai Pao Delivery canceled its subsidy campaign, centered on Hangcheng, online food ordering platforms across the entire Huadong region sprang up like bamboo shoots after rain, appearing overnight.

Chen Yansen knew clearly in his heart that becoming number one in the industry was very simple, but achieving a one hundred percent monopoly situation had absolutely no possibility.

Just like Yunsu Express, Kuai Pao only needed to become the strongest existence.

On the day before December, the second negotiation between Meituan and Dianzhong Dianping broke down, Mama Ali entered the food delivery industry, and WeChat was working overtime to develop the WeChat Pay function.

It was not until 8:30 PM that Chen Yansen drove an Aston Martin Rapide, speeding along Xucheng Avenue, and returned to his new home in the Sanjiaozhou Villa District.

This was a detached villa with one basement floor and three above-ground floors, featuring its own 200-plus square meter rooftop garden; the carved iron gate slowly opened.

Chen Yansen drove the car into the garage, then pushed open the wooden door of the living room; a foyer hall with a six-meter high ceiling came into view, a crystal chandelier hanging down, and the floor covered with a layer of walnut wood flooring.

Changing into slippers, he plopped down on the sofa, then summoned the system panel.

In the Human Dao Torch column, the number at this moment was 170,179.

Enough to synthesize 17,017 threads of Divine Dao Torch!

With the development and growth of companies like Yunsu Express, Sister Chengzi Mobile Phone Factory, and Kuai Pao, monthly labor costs alone reached 1.7 billion, exceeding 20 billion annually.

"Synthesize, add points!"

At the thought, golden mist broke through the air and suddenly drilled into his brow.

After a few breaths, the constitution value became 64.48!

At the current speed, it would only take two months to break through 100 in constitution, thereby activating the next talent.

After the enhancement, Chen Yansen could not sleep at all, feeling his energy was exceptionally abundant; after a brief thought, he sent a text message to Ye Qiuping: "Cook me a bowl of sweet soup."

Upon seeing the text message, Ye Qiuping instantly understood Boss Chen's small hint, hurriedly ran into the room, found a set of lace-trimmed maid outfits, obediently put them on, and tied a black silk bow on her smooth neck and another on her fair thighs.

……

……

Hangcheng, Mama Ali Headquarters.

"President Ma, the test results for Mama Ali Delivery are good; daily orders in Hangcheng have surged from 60 to 1,000, and the number of registered merchants is nearly 300..."

Tang Yongbo, the project manager of Mama Ali Delivery, reported one by one.

In the huge office, besides Ma Liyun, there were Lu Zhaoxi, Zhang Yong, and others.

"What about the data on the rider side?" Ma Liyun asked casually.

"Cumulative registrations are 420 people, with an online rate of 27%," Tang Yongbo responded immediately.

"The average number of fulfilled orders per rider per day is less than 10? As far as I know, Kuai Pao delivery personnel handle over 50 orders daily, with top performers reaching as many as 100 orders."

Lu Zhaoxi interjected with a question.

"Mama Ali riders' unit price, system, and dispatching capabilities are similar to Meituan riders, basically relying on an outsourcing model, whereas Kuai Pao's capacity department is mainly full-time regular staff; the underlying logic is different."

Tang Yongbo turned his head to look at Lu Zhaoxi and explained.

"Does it have a positive and active effect on Mama Ali's business?" Zhang Yong pressed further.

As the business manager for Tmall Shangcheng and Mama Ali C-stores, he only cared whether giving Mama Ali Delivery such a large traffic entry point had promoted e-commerce business.

High frequency drives low frequency, acquiring traffic at low cost!

If the effect was outstanding, the small amount of money lost on food delivery could simply be ignored.

"President Zhang, from a data perspective, the number of times users open the app has indeed increased, but online shopping orders have not grown significantly. Of course, it is also possible that the user volume and order scale are too small; we need to expand the testing scope to collect more direct and effective feedback."

Tang Yongbo answered extremely cautiously.

Although Mama Ali held a 4% share in Kuai Pao, it still could not stop Ma Liyun's determination to enter the food delivery market.

Even if it meant offending Chen Yansen!

Looking at Mama Ali's investment history, it seemed like hitting here and there with a hammer, but if one treated Ali Baba as an advertising company, one could easily see through Ma Liyun's intentions.

E-commerce itself cannot create much traffic; Tmall Shangcheng and Mama Ali cannot do without support from third-party external traffic.

Since Ali Baba was born, purchasing traffic has never stopped; Ma Liyun is a super KA client for products like Qian Du, NetEase, Sohu, Sina, and Jinri Toutiao; this is also the reason Mama Ali prepared to take a stake in Weibo.

"Expand the user scale to 20%." After thinking and pondering for a long while, Ma Liyun instructed Tang Yongbo.

Mama Ali urgently needed to consolidate user retention rates, and the food delivery industry, possessing high-frequency consumption characteristics, had entered Ma Liyun's line of sight.

"Understood, President Ma." Tang Yongbo nodded in reply.

Although everyone present knew that once Mama Ali entered the food-delivery industry, it would collide head-on with Kuaipao.

But Ma Liyun and the others had no choice—Huaguo's netizen population was only 600 million, and Taobao, established over a decade ago, had long since hit its traffic ceiling.

The difficulty of acquiring new users and customers had multiplied geometrically.

This problem was, in fact, also the dilemma plaguing Huang Zheng.

Pinduoduo had products like Jinri Toutiao, Lingxi Browser, and Lingxi Search to funnel traffic to it, but Mama Ali had no such assorted traffic supply packages.

Therefore, Ma Liyun, while copying Pinduoduo's business model, also began eyeing Weibo.

(End of chapter)