Drop with the quick officially announced merger

Summary: Yesterday's drip and quick rumors of a merger have been confirmed. China's largest two taxi software companies will adopt a complete swap method merged into one, set up a new company by the original drop by taxi CEO Cheng Wei and Quick Taxi CEO Lu Zhunwei as joint CEO. The two sides will

The rumours of yesterday's merger were confirmed. China's largest two taxi software companies will adopt a complete swap method merged into one, set up a new company by the original drop by taxi CEO Cheng Wei and Quick Taxi CEO Lu Zhunwei as joint CEO. The two sides will maintain the existing staffing structure and continue to develop parallel operations. More details of cooperation, such as the ownership structure, to wait until the Spring Festival to convene a separate conference announced.

But Cheng Wei has revealed the details of the merger in his internal mail:

"January 21, I, Liu, Stephen launched a secret project in Shenzhen: Valentine's Day program." The goal is to finish the project before Valentine's Day ... 22 days later, we did it. ”

Both the drop and the quick both denied the possibility of a merger. And just a week ago, there were rumors of a taxi and a car in the market to negotiate a merger, and now it appears to be a smokescreen in the process.

This means that the protracted taxi, car "subsidy war" will be nearing the end. And the new company will at least in the taxi software this homogeneous competition market to form an absolute monopoly position, in the car market will also gain a competitive advantage. According to Analysys International, the latest published "China Taxi App market Quarterly monitoring Report 2014 4th quarter" data show that as of December 2014, China's taxi app cumulative account size of 172 million. One quick taxi, drop by taxi to 56.5%, 43.3% of the proportion of China's taxi app market cumulative account share leading position. In addition, as of the 4 quarter, quick taxi coverage of 360 cities, dropping a taxi to cover 300 cities.

The internet car is no doubt a tens of billions of dollars in the track, Uber the latest round of financing valuation of 40 billion of dollars. The drop of the fast end of last year's financing also received a total of 1.3 billion dollars in financing. WSJ thinks the two-home merger will be valued at $6 billion trillion.

Another important implication of this merger is that Alibaba and Tencent are shaking hands in a vital area. In addition to joining forces with peace and Huayi's two traditional industry partners, two were hand-to-hand in almost all areas.

The investment agencies that have joined the two rounds of financing are no longer worried about the cost. and other players in the limousine and car rental market can take a breather after the brutal money-burning war. Last year's taxi war both sides burned 1.9 billion yuan, now includes the special car the red envelope subsidy to burn away tens of millions of dollars every day. Quick Cab CEO Lu Zhunwei in his open letter:

"The vicious mass of sustained burning of money is unsustainable, and mergers are a strong expectation of all investors on both sides." ”

The financing record before the drop of a taxi is:

2012 before the name of a taxi by the Jinsha River to create a round of 3 million U.S. dollars financing; May 2013 Tick-tock taxi to get Tencent 15 million-dollar B-round financing; January 2014 renamed to drop a taxi after the C-round financing, CITIC Industrial fund received 60 million U.S. dollars, Tencent with the investment of 30 million U.S. dollars December 2014, a new round of more than 700 million U.S. dollars in financing, by Temasek, DST, Tencent-led investment.

Quick Taxi before the financing records are:

2012 to obtain the amoeba capital of millions of Yuan Angel investment; April 2013, fast access to Alibaba, Jingwei create 10 million U.S. dollars in a round of financing, the first half of 2014 to complete the B round of financing, the total amount of financing more than 100 million U.S. dollars, a total of four investors, Alibaba, a hi car rental participation; At the end of 2014, the Tiger Global Fund received more than 100 million dollars in C-round financing; January 15, 2015, a quick taxi announced that the company has completed a new round of 600 million U.S. dollars in financing, by SoftBank Group, Alibaba Group and Tiger Global Fund also participated in the investment. [8]

But the merger does not mean the overall market for Internet vehicles has been set. Last August, easy to use the car on hand Baidu launched a business car rental services-"Baidu limousine." Baidu and Uber have come together at the end of last year, and both sides have formally reached strategic cooperation and investment agreements. Uber, which opened the API to third-party apps last August. In yesterday's Baidu four quarterly earnings call, Li said Baidu map and Uber integration is about to be completed.

In addition, easy to use car and Haier industry finance set up a joint venture car leasing company "Sea easy to travel", 3 years after the plan will reach 8 billion assets scale. Shenzhou Car Rental Also at the end of January this year launched its own limousine service "Ucar Shenzhou train."

Both the drop and the quick both acknowledge this, and that is why the two sides are willing to merge, as the official press release says:

"The car field faces a variety of new changes and more new forces, including driving, carpool, bus, subway and other areas of the broader mobile travel, both sides are faced with a variety of challenges and risks." As the pioneer of the industry, we need to gather the mobile internet talents, and independently adapt to the market and user needs to develop. ”