Drop fast Both sides merge, Zhu Yuhu oral record

March 4 News, this February 14, drop a taxi and quick taxi announced the merger. "Up Yu Qingping, reverse attack shook, Shanghai wide anti-Vice, financing sniper, wipe gun fire, red Envelopes War, Liu join, shake hands; it's hard to imagine that it's all done in 2 years. Zhu Yuhu, managing director of the Jinsha venture, summed up the development of the two years by dropping a taxi.

 


Jinsha Chong Cast is a drop of a taxi to a round of investment agencies, in drops of taxi CEO Cheng Wei have seen 20 VC organizations, in December 2012, Zhu Yuhu micro-blog Appointment Cheng Wei, met a half hour after a round of financing.


 


in each VC are not optimistic about the situation, Zhu Yuhu Why have confidence betting drop? Aside from the money, what is the Zhu Yuhu's biggest help to the drop? In two years, what is the unknown story of the drop and the fast rounds of capital games and the push-and-go? who finally contributed to the drop and quick merger? After merging, What changes will happen in the industry? Recently, Zhu Yuhu to Tencent technology to tell all this.


 


Following is Zhu Yuhu's oral record:


 


dropped drops when Cheng Wei thought he met a liar


 


we have been looking for a long time in the field of travel. As early as 2010, we were very optimistic about local travel.


 


we focused on the first round, and then they wanted to invest, and even signed an investment agreement, but did not invest after due diligence.


 


One reason is that at that time the driver's smartphone penetration rate is very low, easy to expand the driver group, want to give the driver a mobile phone, but to do so, the expansion cost is very high, low efficiency. Let us worry about another more critical problem is that at that time, the sense of the taxi software is not yet at the point, so finally there is no investment.


 


Then we came into contact with the team. At that time, the team has a lot of users in Beijing, but contact down to find that the team is too weak, the internet thinking is also wrong. For example, at that time with a rocking car must register first, but also to recharge, is not the internet thinking, so feel this team in the long run can not. During the same period, in Hangzhou, Chen Weixing (formerly a quick taxi CEO) is also hatching a project, is later a quick taxi.


 


November 2012, I saw drop a taxi, on the micro-blog about Cheng Wei chat, see him chat for half an hour to find, Cheng Wei team really think very clearly, what should do what should not do. Team morale including the past BD and push experience just match this business, so talk about half an hour on the basic set up, Cheng Wei conditions we fully agreed.


 


later I learned that before seeing me, he had seen at least 20 VC, but no one gave him an investment. I saw him for half an hour and decided to vote for him, he thought I was a liar.


 


the day I went to see Cheng Wei, back to the international trade, walking on the road, downstairs walked three white-collar workers, one of them very excited to his colleagues said I yesterday with drops hit the car. This makes me think, the taxi software is a high-frequency just need to apply, and has the high virus propagation characteristic, must cast.


 

The only thing
forced Cheng Wei was to accept Tencent's investment


 


as I personally, in the drip development process, has been standing aside for the drop of applause of people, and not too much involved in specific matters. The only thing that strongly asked Cheng Wei to do was force him to take Tencent's money.


 


After our investment, I suggest Cheng Wei and Wang Gang (drop angel investors) take Tencent's money, but they are hesitant.


 


One reason is Cheng Wei and Wang Gang are the original Alibaba employees, take Tencent investment will certainly have psychological barriers. More importantly, at the time of the B-round financing stage, they did not want to accept strategic investment prematurely and to step in prematurely. They want to make strategic investments when the market is clearer in the C round.


 


This consideration is generally right. But at that time, Tencent Micro-letter entrance force has been fully demonstrated, and Ali in Hangzhou has supported a quick taxi. Tencent also said very clearly, must be in the travel area to invest in a home, the most hope investment drop. If Tencent is forced to support the swing of the car, which means that drip in the Beijing market to play the car, in Shanghai, Hangzhou to play a quick taxi, will be a very hard two-line combat. Under the weighing, the introduction of Tencent's strategic investment, the Beijing market firmly live, it has a high strategic value.


 


on the other hand, Tencent's investment is very professional and very sincere.


 


in the spring of 2013, Tencent Investment Department general manager Peng Zhijian in Zhongguancun White Courtyard invited us three people to eat, later, Tencent Board Chairman Ma (Micro Bo) (Pony) during the two sessions to Beijing also specially to find Cheng Wei to eat. At that time drop is still very small, a day only one thousand or two thousand single, pony to find entrepreneurs to eat, can be seen from pony to the investment Department of the strategic importance of travel in the area is very sensitive.


 


in terms of professionalism, it is fair to negotiate with Tencent's investment ministry. When I vote, Cheng Wei The conditions we almost agreed, Tencent is the same, we mention the conditions are almost all agreed to the start-up companies are very supportive and very open.


 


April 2013, drop by taxi accepted Tencent's B-round investment. Because it takes time to do the VIE overseas structure, from the legal documents, we first day and drop a taxi to sign a contract, the next day, Tencent and Drip signed a B-round financing contract, this time, by the end of April.


 


Ali personally sniper drip financing


 


after the two sides melt the B round has not melted the C round, both sides have played very tragic.


 


to drop melt C round, that time Ali himself out of the sniper drop financing.


 


at that time, we met every investor, Ali will call the past to ask him not to invest drops, and even promised to each other Ali listed shares, at such a price not let them invest drip.


 


We met a few investors in New York, and we met a few investors in Silicon Valley who had already made an appointment and later said they couldn't see it. Even one of them has signed an investment agreement, and I am sorry to say that I cannot vote.


 


the end of 2013, Citic Industrial fund received a drop in the C round of financing. At the same time, with the help of Ali, Fast also got the C round financing. In February 2014, the two sides began a three-month subsidy war.


 


by the July 2014, the drop in funding became easy after Liu joined the drip. b round, C round time we also helped a lot of, even and Cheng Wei to the United States is my translation, but Liu come after we don't need to participate in, she all done. Liu is very strong, can all the investment funds interested in this industry pull over, 3 weeks to fix 700 million U.S. dollars financing.


 


Unexpected subsidy war


 


subsidy War at the beginning we did not think, is completely wipe the gun. Initially, Cheng Wei to find Tencent to 8 million yuan budget to promote micro-letter payment, Tencent felt too little, gave 15 million yuan, as a 3-week budget, did not expect a half-day on the line.


 


no one thought the subsidy effect so good, Tencent found that the micro-letter payment is very helpful. At the beginning of 2014, that time just after the year, because the micro-letter red envelopes, micro-letter payment has been tied a lot of cards. After a year, these people do not have to micro-letter red envelopes, just drop and the micro-letter payment active.


 


Tencent first subsidized a week, the volume is indeed very fierce. But fast and Alipay response is also very quickly, feel wrong, they have to follow up, they follow up after we can not stop, must keep up, and then can not stop, hit to the end of both sides of the anger.


 


to the April 2014, the subsidy has been a lot of, taxis are almost free, the user access efficiency is very poor, must stop, but if the other side does not stop, forming a prisoner's dilemma.


 


Cheng Wei and Quick Taxi CEO Lu Zhunwei are looking at each other can stop, but also can't all of a sudden stop. So the two sides are looking at each other, drop drop a little quick follow-up, quick drop a little, drop again to follow up, the two sides release friendly gesture, step by step to the subsidy down, to May 17, both sides announced the cessation of subsidies.


 


facilitated the merging of intermediaries: Baofan and Liu


 


in the process of droplet and fast competition, the problem of merging has been discussed many times. Many investors, including Goldman Sachs, have said they want to invest in the merger, and many have more than once expressed the desire to merge.


 


but finally can contribute to drop and fast merge, really want to thank Huaxing Capital CEO Baofan and Liu. Liu is really something that both sides can say, and this person is really important. Because both sides in the past is too fierce, trust is relatively low, Liu in both sides trust a higher degree.


 


in the second half of 2013, before the rapid acquisition of the Bumblebee, also at Goldman Sachs Liu had personally organized a bilateral negotiations. At that time we agreed to meet at the airport in Hangzhou. Liu the morning from Beijing to Hangzhou airport, and Ali Investment department Shei, Lu Zhunwei and other people to eat lunch, Liu Eat lunch and fly back. At that time, the main point of disagreement was that there was too much gap between the expectations of the share valuation ratio.


 


but to the recent round of financing, quickly with son support. We all understand that a back to Tencent, a back to Ali, so the fight will not kill each other.


 


from the capital considerations, if at tens of millions of dollars or hundreds of millions of U.S. dollars level, Tencent and Ali indifferent, they can fight this battle, if hit to billions of dollars, we all feel that there is no sense of play.


 


at this time, both teams felt the need to seriously consider the merger, after nearly one months of negotiations, and finally realized the "Valentine's Day plan."


 


Evaluation: Cheng Wei Learning Ability is strong Liu very spelling


 


Cheng Wei is really smart and has a very strong ability to learn.


 


Cheng Wei change too fast. Drop two years business development hundreds of times times, he can follow the company grow together, see a lot of big storms. This is really rare among entrepreneurs. There are a lot of entrepreneurial ability is also strong, but a year can grow two or three times times, it has been done well, a person can be in two years to master the growth of hundreds of times times is very rare.


 


first he saw VC when also blush, to see dozens of VC after very sophisticated, momentum also came out. At last it attracts Liu, which is even more than all of us can imagine.


 


Liu just started coming in for a month or two. Liu She has three children, and so desperately, worse than at Goldman Sachs.


 


Cheng Wei and Liu Two people with the cooperation I think is very tacit understanding, and indeed very complementary. Liu in the capital market is relatively high, Cheng Wei very grounded gas, two people are very complementary.


 


drop on the subsidy spent a lot of money, but the working conditions have been very difficult, their former office is very small, breathing will feel hypoxia, even now travel conditions are very difficult. Subsidy war, Tencent sent technical special team support, office sit down, can only transfer to the office of Tencent, we all of a sudden excited to find Tencent office incredibly pack to drink.


 


reverse attack shook the time is also, shook the package under the Airport T3 terminal, drop is by four or five o'clock in the morning up at the train station to install an app, can be said to be completely rely on Millet defeated shake.


 


The two sides merge: Three months after the industry has changed


 


drops and fast mergers are a big shock to the industry, and almost all companies in the field are reassessing the current situation, rethink their strategic decisions, and are likely to have a new round of changes in three or four months. China's internet has been the flow of the king, now it seems clear that the taxi is a local mobile traffic entrance, who master the entrance can be competitive advantage. How the field of mobile travel continues to evolve, let's wait and see how the next season's drama is staged!