Decrypting the Taxi software War: The Low-cost expansion behind huge subsidies

After a 77-day taxi software subsidy war, tick-tock taxi handed over a transcript: tick-tock taxi users from 22 million to 100 million, daily orders from 350,000 to 5.2183 million, through the micro-letter payment of the subsidy reached 1.4 billion. This means that each new user's acquisition cost is only about 18 yuan. For the past two months, tick-tock taxi and quick taxi staged a roller coaster of subsidy war: early January, the first surge of subsidy, February into the white-hot, the two sides in a week to increase subsidies, but the high subsidy can not be long-term continued, March, the two sides invariably cooled, into the post subsidy era. After announcing the micro-letter payment subsidy more than 1.4 billion, the quick taxi to Tencent Technology said there is no new data announced, but the rivalry between the two sides is still continuing, not only to taxi software cash support, but also open resources and access, such as tick-tock access to a variety of mobile games, Fast also and Ali part of the O2O business to achieve cooperation to improve the competitiveness of software. It turns out that while the total subsidy is seemingly high, but the cost of acquiring a single user is low, the only question is, when the taxi software subsidy contest has taken a paragraph, what other businesses can expand quickly with similar activities? The logic of the subsidy war this two-month subsidy war has brought a hefty transcript. Tick-tock data shows this change-January 10, the national average of 32 cities daily 350,000, February 24, the national 120 cities daily average of 3.16 million, March 28, 178 cities nationwide, 5.2183 million daily average. The number of users, before the subsidy, beep about 22 million users, March 27, tick-tock taxi users to break 100 million. Tick a taxi. In the past 77 days, the daily average of 5.2183 million orders more than 132,700 single, Taobao 4.1095 million and the United States Group 219,100 single, become the largest mobile internet daily orders trading platform. According to the subsidy of 1.4 billion yuan, tick new 78 million user projections, the cost of a single user to obtain subsidies of about 18 yuan. Comparatively speaking, many mobile application promotion single user's acquisition cost has already risen to 40-50 yuan, the cost of micro-letter payment obtains the user is still moderate. A more cost-effective thing to pay for micro-credit is to cultivate the user's mobile payment habits at least. In the March 28 Internet Financial Forum held in Shenzhen, Wang Weidong, a financial industry research analyst, said that Tencent, Ali PK is so intense, a core goal is to cultivate user behavior habits. The development process of the first 15 years of the Internet has proven that E-commerce is important to users and online financial services, as is mobile payments. In addition, another by-product of the benefit is dispelling concerns about the security of mobile payments. After a taxi is introduced into the micro-letter payment, during the first week of the event, from the background data of the tick-tock taxi, about 80% of the taxi drivers received a fare immediately, then came down to one day, now, nearly 90% drivers every 3 days. The person responsible for the beep has explained thatAt first the driver did not understand the micro-letter, worried about the security of this new payment model, and the subsequent gradual understanding of the security concerns. Subsidy war is the entrance of the competition for taxi software subsidies to the back of Tencent and Ali supporting the credit, but also let the market share of the venture into a big company's entrance dispute, both sides continue to overweight subsidies. At the beginning of 2014, when a quick taxi announced an investment of 100 million yuan to subsidize users, it may have not expected a subsidy war to continue. On January 9, after the announcement of the financing, tick-Tock said it would subsidize the user's activities with the help of micro-credit payments. One months later, both sides handed over a transcript: tick-tock official data revealed that from January 10 to February 9, tick-tock taxi Average daily micro-letter payment order is 700,000 orders, total micro-letter payment order of about 21 million orders, the total subsidy amounted to 400 million yuan. During the event, tick-tock taxi users to break through 40 million, increased by one times before the event; Daily orders are 1.83 million, the first day after February 7 peak 2.62 million orders, micro-letter payment order peak of 2 million orders. February 8, the rapid release of data shows that by then, the daily average order volume has reached 1.28 million, one-day maximum order volume exceeded 1.62 million, which use Alipay purse to pay the maximum number of daily orders to break 600,000. After the era of subsidy ushered in the regulation in two taxi software high subsidy quickly detonated the market at the same time, also produced a lot of problems, such as: Taxi drivers began to pick jobs, the original is to improve the efficiency of taxi cab software led to the phenomenon of empty hire; some passengers are poor or forget to pay passwords Taxi software background system can not deal with explosive growth of the user demand information, resulting in taxi software often shows that the payment is unsuccessful; some drivers in order to reward the driving in the road to continue to rob a single, driving safety can not be protected, or even violate the traffic rules that can not be called on the road. Currently, both sides have taken the initiative to cool the subsidy. Tick-tock from the beginning of March, 4 consecutive adjustments of the amount of random relief, from the maximum reduction of 20 yuan to March 18 to reduce 5 yuan. Fast from March 22 to make adjustments from 0 o'clock, Beijing, Shanghai, Hangzhou and other cities to maintain a single stand minus 5 yuan per day, 2 single unchanged. The amount of subsidy in other cities is adjusted to 3 yuan per stand minus 2 per day. Reduced subsidies also cut the user's enthusiasm in the taxi software, but no harm to the overall situation, drivers and passengers clearly said that in the subsidy software dropped below 5 yuan, the attraction has been small, the use of taxi software to take a taxi will be reduced, but still use the taxi software. Taxi software at the beginning of the rise, the transport sector has policy intervention, resulting in some of the taxi software died down, and recently, new regulatory sound sounded. March 28, the Ministry of Transport held its second regular press conference in 2014, Li, deputy director of the Policy Research Department of the Ministry of Transport, said that taxi call service, some enterprises in the use of mobile phone taxi software passengers and drivers have given the material rewards, this may have an impact on the fairness of the market. Earlier, during the two sessions, Transport Department party Secretary, Minister Yang said, theThe department will expedite the study on the development of standardized mobile phone calling software and develop a standardized technical standard for taxi calling service, and support and guide the establishment of taxi service management information system in cities and above. This also means that the Transport Department to take a taxi to stabilize the software caused by the injustice, this is not necessarily a bad thing for two of taxi software companies, but it has created a new problem for Tencent and Ali behind it: When a taxi software subsidy contest has been staged for a paragraph, what other businesses can expand quickly with similar activities?