The sharing economy itself pursues the use of resources to maximize its return on assets, so its core element is whether the project can identify high-frequency usage scenarios.
Editor’s note: This article is from WeChat public account “Financial Graffiti” (ID: caijingtuya), by Aspirin. Authorized to reprint.
The consumption upgrade seems to be irrelevant to the sharing economy, but we believe that it is precisely because of changes in the consumption structure that it creates opportunities for the sharing economy. This point is different between China and the United States. The bottom line of consumption upgrading is mainly driven by technology in the United States, while it is driven by consumer demand in China.
The sharing economy itself pursues the use of resources to maximize its return on assets, so its core element is whether the project can identify high-frequency usage scenarios.
Didi Travel is currently the most valued sharing economy in China and is used as a case study in this article.
In the near future, the issue of Didi Travel (Drip) – the windmill business is back online. The latest news shows that Didi has adjusted the trial operation plan again, and all users cannot use the shuttle service after 8 pm.
On the evening of November 7, Didi released “After listening to the opinions of all parties, we decided to adjust the rules for the operation of the windmill” to unify the service time of male and female users at 5:00-20:00.
In terms of supervision, on November 11, the Ministry of Transport, the Central Network Information Office, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Emergency Management Department, and the State Administration of Market Supervision jointly organized an inter-ministerial joint meeting on the coordination of new modes of transportation. In the name of the office, the joint appointment of Didi Chuan, Shouqi about car, Shenzhou UCAR, Cao Cao travel, Meituan travel, Gaode, 嘀嗒 travel, haha travel and other eight network car platform companies, aiming to further eliminate Security risks.
Drips are hard to scalp, careful, and the windmill should be pushed back up under great pressure. Is this really necessary here?
The answer is yes: yes.
Service provider: Windmill is the earliest profit department
First of all, from the internal financial data of Didi Travel, as of now, Didi continues to operate at a loss. The data shows that the annual loss of Dilu in 2018 reached 10.9 billion yuan, andIn 2017, the loss figure was 2.5 billion.
Cheng Wei has also publicly stated that since 2012, Didi has never achieved profitability.
It is understood that before the downwind in 2018, the business is actually the earliest profitable department within the whole lottery. The driver’s audit threshold and operating cost are relatively high compared with those of express trains and special vehicles. Lower.
The importance of profitable business for a company is self-evident. In the early 2019 after losing the windmill business, the overall internal staff reduction of Didi Travel was 15%, involving about 1,870 employees.
Secondly, such as the trip, Cao Cao travel, Gao De taxi and other competitors group wolves, the shuttle business does not do, some companies do, and therefore can not do.
Moreover, in order to complete the full coverage of travel scenarios, the use of the shuttle service to complete the satisfaction of long-distance demand scenarios is also an extremely important part of Didi’s travel strategy.
If from the perspective of the sharing economy, in fact, the windmill is an innovative model that conforms to the definition of “sharing”. We believe that this is another important reason why Didi does not give up the business in addition to profit.
Service users: strong market demand
Traveling as a service business, the high probability of demand determines the decision of the supplier. The market’s need for a ride is undoubtedly one of the important reasons for Difficulty.
Actually, according to the financial graffiti, no matter what the revision is, there are many tossing security measures. Most drivers in the shuttle business are willing to continue. The reason is very simple – nothing more than “making a lot of money”, but also earning hardships, why not?
On the other hand, for passengers, the drop in the windmill business has risen geometrically during the peak hours of the car waiting for orders. In addition to the increased cost of time, the consumption of money has increased a lot for many users. Now the price of the express train is almost the same as that of the taxi. No matter how many competitors continue to subsidize the express train and provide the shuttle service, there is no price advantage, and why not switch to other taxi software.
Drip Monthly Data Source: Drip Institute, Financial Graffiti
As shown in the above picture, after the downline of the windmill began in July 2018, the monthly work of Didi began to fall off the cliff.
As for the concept of creating a social scene by the windmill, we are more inclined to think that this is a hidden attribute attached. It is not equal to a stranger.It will definitely generate socialism and cannot be an advantage of the windmill business. Fast and cost-effective is still the main selling point.
Security: Old pain points for travel services
In order to save this business, Didi has been working hard. An independent safety response center was set up, which stipulated the number of orders received by the owner, restricted the place of the order, synchronized iteration 110 alarm platform, and the recording of the itinerary.
In the near future, in addition to the basic real-name certification in the past, Didi also joined the public security organs to conduct a comprehensive background review of registered car owners, and introduced a list of untrustworthy people. The untrustworthy executors could not register as a windmill owner. In addition, a video verification function has been introduced to identify the face of the owner in the steps of taking orders and getting on the bus to ensure that the rider is the registered owner himself.
But these are still not enough for the majority of users.
The core appeal of users is to hope for the comprehensive security of travel. This is undoubtedly too “love”, in order to be so expecting it. Which government and organization in the world can fully guarantee the security of its users? Drops can’t be done naturally.
If we turn back the time to the time when there is no drip, taxi deck, no watch, black car, no passengers forcibly carpooling, etc., safety accidents occur frequently, but because of other options, Adding social platforms such as Weibo is not as popular as it is today, and the voice of public opinion has not stirred up the waves.
Looking back to the present, we need to admit that it has improved a lot more than in the past. At least, I am willing to listen and make corresponding corrections and adjustments. I can’t kill the company because of a single case. The choice is too harsh, and it will only have a negative impact on the sustainable development of the sharing economy. Is it possible to lose these online car platforms and return to the old era of the past, so that such security risks no longer happen?
The essence of the incident is still crime, Didi is also good, other platforms are just the tools and means to commit their crimes. We expect Didi to continue to have further means and breakthroughs in security. The majority of users bring a safer, more convenient and more comfortable travel experience, and try to reduce the occurrence of such tragedies again. I also hope that the sharing economy can develop better and create greater value for the society.
The moment the sharing economy is overshadowed, the possibility of redistribution again?
As the shuttle business is back online, we can’t help but think about the possibility of dropping the listing to the agenda. The last rumor about the launch of Didi was last year:The listing location is expected to be in the US with a target valuation range of $70-80 billion.
The reliability of the rumors is very high. It was almost a consensus of the shared economic enterprises when going to the US, but after the incident, the listing of Didi travel was gone.
The situation is changing rapidly. It is not a bad thing to go to the US stock market last year. Since the launch of WeWork failed, Uber (UBER.US), Lyft (LYFT.US) bloodshed, US stocks may no longer be the paradise of the sharing economy.
Uber Stock Price Trend Source: NASDAQ, Financial Graffiti
Uber, who once entered the Chinese market and was sold to Didi, is no stranger to everyone. It is the “child of the election” that shares the economy. Most of the first batch of shared economic enterprises have fallen, Uber is still struggling with US stocks. adhere to. Uber is the most valued unicorn company in the world, and we try to explore the possibility of Drip re-listing through its analysis. Of course, given the market environment and many other reasons, several companies that are compared cannot be fully generalized, but the logic behind them is generally the same.
First of all, the same as Didi, Uber also advertises itself as a technology company, not just a taxi platform. “Data” is its first core competitiveness.
Uber has driver’s license and insurance information for each driver. It can even monitor whether the driver is using a mobile phone while driving, and can monitor whether the driver’s brakes are too hard or too fast. In order to be able to judge more fairly when receiving complaints from passengers.
This point, Lyft and Didi also have a few different but roughly the same technical means, but the difference is that the driver’s license and insurance information is almost equivalent to holding the driver’s lifeline, the domestic audit of the driver to monitor Relatively difficult.
The traditional taxi service does not need to be described. Uber is ideally built to connect a service, including brands and connections between people. For example, the application of Uber Rush is to complete the personal parcel delivery, similar to the domestic city delivery service; for example, Uber Eats’s take-out service; and Uber Health, for example, is committed to sending patients on time to the medical sites they are going to.
We can see several businesses from Uber’s latest third-quarter earnings report.