A taxi application of the burning Money war

According to a mysterious personage in the industry, based on the current competitive situation speculated that the fast and tick in 2014 for the market to put the total amount of capital reserves of about 3.4 billion yuan. Burning money still depends on the face of the capital reserves. It is reported that fast taxi total financing amount of about 9 million U.S. dollars, and tick-tock Taxi's total financing amount of 120 million U.S. dollars. But believe that a quick taxi will soon follow up on financing.
January 21, a quick taxi and Alipay Wallet announced a joint announcement that a further 500 million dollars would be invested to subsidize the drivers and passengers. According to the plan, the passengers who use the Alipay purse to pay for the quick taxi application will receive a reward of $10 per order from the platform, while the driver receives 15 yuan reward for each order.

500 million yuan subsidy, quick and pay treasure how to out? Quick Taxi coo Zhao Dong said the inconvenience revealed. And Alipay, a PR person, said the total investment will be the quick taxi and Alipay aspects of the half amortization. But that's not possible. Because, the quick Taxi's total financing amount is only 9 million dollars.

As early as January 10, tick-tock taxi has been and micro-letter announced that the use of micro-letter payment to the tick-tock taxi drivers and passengers will each receive a 10 yuan return, in addition, every day will be randomly generated 10,000 free places. Only a week after the launch, tick-tock taxi subsidy has exceeded 20 million yuan.

A person in the industry who is not in the market says that, from the current competitive situation, the fast and tick-tock funds used in 2014 to launch the reserves of about 3.4 billion yuan.

To burn money depends on the reserve of funds. The total financing amount for a quick taxi is about 9 million dollars, while the total financing for a taxi is 120 million dollars. But believe that a quick taxi will soon follow up on financing.

1, the mode of burning money will not change

As long as the market stalemate, fast and tick-tock burning money behavior will not change. A relatively static market pattern must be CMCNA open. That is: The market's first name accounted for 60% of the share, the second accounted for 30%, the rest accounted for 10%. Otherwise, the campaign will continue. Back to see, once noisy group buying law is the same, but the different industry competition development cycle is different. And according to the view of the data: As of 2013 Q3, quick taxi in the domestic market share of 41.8%, tick-tock taxi for 39.2%, ranked third in the swing car market share of 9%.

2, this is Ali department and Tencent Department in O2O competition

To promote the burning of money for the market is not only capital, but also behind the strategic hands of the will. This is not only a "fast + Alipay" and "tick-tock + micro-letter Payment" PK, but also Ali and Tencent in O2O another subdivision of the field of contention.

From the point of view of payment, taxi behavior is very important to the cultivation of the user's offline payment habits. And once the user is accustomed to a certain line to pay products, it will extend this habit to the PC Internet, in addition, the PC-side of the size of the electrical quotient is far from the economy of the scale of the big.

From Tencent and Ali's O2O competition to see, taxi application belongs to the main categories of travel services, and travel services and catering-oriented local life services constitute the main user O2O scene. When the public comments, such as the United States Group Group purchase site competition for local life services, the pattern gradually became clearer, travel services has become another major market competition area.

For the giant, O2O is the whole ecology, this ecology not only has the local service, the travel service, the payment system, as well as the map, but also has the POI and the open platform data accumulation. Taxi application value chain in the back-end of the data, and the front-end is strong operational attributes, to rely on dirty living, dirty laying the groundwork. Giants directly involved in no advantage, can only rely on investment to layout, through the layout to obtain higher value chain data, with the user Travel Service data control, it is better to O2O in the field of other layouts, but also facilitate the integration of these data into the map of the search portal.

3, taxi and travel services will be merged

Taxi, car rental, driving, will be integrated with each other, personal consumption, business areas, will also be integrated. It can be seen that the main commercial areas of the easy to use car has begun to enter the field of taxi, and quick taxi is expanding the commercial field. Quick Taxi coo Zhao Dong told me he predicted that tick-tock taxis will also be in the business field within 3 months.

Taxi, travel services will fuse the logic as follows: First, the use of a taxi without any income model, but the commercial car rental area of cash flow is more adequate, the platform to the driver to pay the account period is usually 1 months, and taxi application platform to the driver is real-time. Taxi applications into the field of commercial car rental, will give their own money-burning competition to bring a certain degree of capital replenishment, and commercial car rental into the use of taxis, you can get more scale, after all, taxi users of the scale and frequency than the commercial rental of the user size and frequency of large.

Second, from the expansion of local life services to the logic, the home from the consumption of higher frequency of food cut, and then began to integrate other local services, such as the United States and the public comments, and travel services similar to the consumption of higher frequency of the taxi service began to cut, and then began to integrate other travel services

4, 2014, this area may have more intense acquisition integration occurred

Because the taxi application is a strong operation service, not only rely on capital, but also rely on operational professionalism, localization and barbaric growth, for example, local policy, taxi environment is different, in the two or three-line promotion will encounter certain difficulties, and this premise is more suitable in a highly competitive background to take the acquisition strategy, looking for business, Resources to complement the team to buy and integrate. This merger is likely to be more intense in 2014.

According to the view of the data, 2013 Q3, the domestic taxi application of the top five, respectively, for quick taxi, tick taxi, rocking recruit car, Bumblebee and taxi, market share distribution of 41.8%, 39.2%, 9%, 3.9%, 2.5%. Among them, the quick taxi has been integrated with the bumblebee, both market share of a total of 45.7%. And once tick a taxi and shake a car to complete mergers and acquisitions, the market share of the total of 48%, that is, it is possible to change the pattern.

One interesting thing is that I asked the Cheng Wei founder, in a micro-letter, whether he would consider an acquisition after 100 million dollars in financing, and his response to me was a smiling little letter expression.

If there is no other side to disrupt, the fastest, most brutal competition should be the entire 2014, and by 2015 the pattern may change. According to the current promotional costs, the most current financing tick, also have to be in 2015 to be a second round to survive, and how much will depend on the 2014 years of the year. This view is consistent with a taxi application industry that requires anonymity.

Of course, in the consideration of O2O business integration issues, must not forget in Tencent, Ali, there is a big guy called Baidu; in thinking about mobile issues, also must not forget, there is a good through playing security card to disrupt the situation of the 360. When you take a taxi, is it safe to pay with the mobile? Is it safe to sweep the two-dimensional code with the driver? You know.