Chapter 680

Hearing Shen NANPENG's question, many people on the court were quiet. They all wanted to hear the answer of the upstart CEO of Kuai'an taxi.

Kuai'an taxi is one of the ancestors of taxi software in China and even the world. It was founded six months earlier than Uber, another taxi software giant invested by foreign Huizhong.

Cheng Xiaodong, founder of Kuai'an taxi, started his business after graduating from the dark horse college founded by Fang Zhe in his early years. Although his achievements are not as good as Fang Zhe, he has already entered the ranks of top Internet giants in China.

Nowadays, Kuai'an taxi occupies more than 70% of the taxi market in China. It is also the first taxi software in overseas South Korea, Japan, Southeast Asia, Central Asia such as Russia and Kazakhstan, and South or West Asia such as India and Iran!

More than half a month ago, Kuai'an took a taxi to complete its round D financing since its establishment, with a financing amount of up to US $6 billion and a market valuation of US $30 billion, which is only US $10 billion lower than Uber, which occupies the markets of North America, Latin America and Europe!

Compared with previous generations, Kuai'an taxi with Huizhong investment and help has started the internationalization process earlier and faster. Although Kuai'an taxi failed to quickly occupy the global market because of the rise of Uber, it now occupies half the world, which is much better than most domestic Internet giants with business only in China.

The market value of Kuan taxi, valued at US $30 billion, is enough to rank in the top 10 among domestic Internet enterprises. Therefore, when Shen NANPENG asked Cheng Xiaodong, all the leaders present gradually calmed down. Even Fang Zhe and President Ma looked at Cheng Xiaodong.

Being stared at by so many big guys, Cheng Xiaodong is not nervous and unnatural. After a few years of entrepreneurship, the spotlight and the media have exercised his courage.

"In the next step, we intend to continue to consolidate the market share of all countries and regions involved in our business, and strive to stabilize the rear area before fighting hand-in-hand with Uber! There is no listing plan yet."

Although Cheng Xiaodong's answer was simple and plain, everyone could hear the smell of gunpowder.

In recent years, Kuai'an took a taxi from China to Japan, South Korea, Southeast Asia and Central Asia, while Uber radiated from Silicon Valley to North America, Latin America and Europe.

At present, the two countries still have a tacit understanding. They strive to develop on their own territory and suppress other competitors. Even in the valuation of the capital market, they echo each other from a distance.

However, compared with the smooth development of Uber abroad, it is almost difficult to have a large-scale competitor. Kuai'an taxi has encountered a fairly strong competitor in domestic, Japan, South Korea, Southeast Asia and other markets. At present, the second taxi software in these markets is fast taxi!

Originally, after the rise of Kuai'an taxi, with the investment and support of Huizhong, it is difficult for a large-scale taxi software company to appear in domestic and other markets. More than a year ago, the fast taxi with unknown reputation caught up with Tencent and Baidu, and accepted the investment of the two giants at the same time.

This time, the fast taxi began to become wider, and several rounds of "money burning wars" have been set off in the taxi software industry!

At the end of last year, fast taxi began to provide crazy subsidies to drivers and users. Users' taxi fees were reduced by 10 yuan per order, and drivers were rewarded with 10 yuan per order. In just half a month, the market share of fast taxi doubled, accounting for as much as 8% of the whole taxi software market.

Although the market share of more than 70% is far from enough compared with Kuai'an taxi, its crazy growth rate is enough to keep Kuai'an taxi vigilant.

Therefore, half a month after fast taxi began to burn money subsidies, fast Ann had to fight and began to burn money subsidies.

At the end of December last year, Kuai'an taxi also began to reduce the taxi fee by 10 yuan for each order, and the driver was rewarded with 10 yuan for each order.

Then, the subsidy for fast taxi was upgraded!

After new year's day, the subsidy for each order of fast taxi for users has increased to 10-15 yuan, and the reward for each order of drivers has also reached 10-15 yuan. Perhaps seeing such a small increase in the amount of subsidy, users have not been attracted to use fast taxi as before. From the middle of new year's day, the subsidy for users of fast taxi has directly doubled to 20 yuan, The driver reward has also doubled to 20 yuan. Many users whose fare is less than 20 yuan are directly free of charge!

Who doesn't love driving alone? Since then, the growth of fast taxi users has entered a new outbreak period. Although kuaan taxi knows that such crazy money burning is making the market competition deformed, how can they be indifferent to the crazy growth of competitors' number of users and market share!

Therefore, since then, Kuai'an has taken a taxi to formulate a competitive strategy. How much is Kuai'an's subsidy? Since they want to burn money, let's burn it to see who can consume who?

The two taxi software companies of kuaan and Kuai started a money burning war, but they suffered from all kinds of small taxi software that were still surviving in the market. Originally, their user volume was small. Next, they were attracted by the money burning of Two Big Macs, and they directly entered the process of bankruptcy and bankruptcy.

The whole taxi software market has fallen into fierce competition. The subsidy war has burned from home to abroad, from Japan and South Korea to Southeast Asia, and even to India. I don't know how many international friends it has been cheaper.

The peak period of the money burning war was when the world cup in Brazil was held in June this year. In order not to miss this rare marketing opportunity, both sides opened the largest money burning subsidy war in the history of taxi software.

"Not only does taking a taxi cost nothing, it also gives money!"

The first taxi for each new user is not only free, but also an additional taxi red envelope of 5-10 yuan. For each newly registered driver, the first order will be rewarded with an additional 50 yuan!

According to people familiar with the matter later revealed to the media, in the last half month of the eighth finals of the world cup, the two sides each subsidized no less than US $500 million, and on the day of the World Cup finals, the amount of subsidies of the two sides set a new record, reaching an amazing US $100 million left and right!

One day subsidy of US $100 million! What concept? Converted into RMB nearly 700 million!

It costs 700 million yuan a day. Fang Zhe, the richest man in the world, rarely dares to play like this!

The market was shocked, the users were crazy, and the two companies couldn't hold. As soon as the world cup was over, the two companies had a tacit understanding to stop large-scale subsidies to users and drivers.

Later, Cheng Xiaodong revealed to Fang Zhe that from the end of last year to the end of this year's World Cup, the two companies stopped the subsidy war at the same time. Kuai'an took a taxi and burned nearly $2 billion, equivalent to nearly 14 billion yuan!

According to Cheng Xiaodong's estimation, faster taxis that start subsidies earlier than Kuai'an's taxi, and more subsidies for new users, can only burn more than Kuai'an, not less. According to the calculation of their data group, the amount of money burned by the other party is at least $2.3-2.5 billion!