Drop a taxi: Future business model based on big data

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Article | Sinorama Journalist Shongqing Photography | Shiwan

Many people living in Beijing may not know the technology of Orange, but must know its products drop by taxi. June 9, is the Beijing Small Orange Technology Co., Ltd. (hereinafter referred to as "drop a Taxi") set up the two anniversary of the big day. On this day, the company headquarters from the crowded Zhongguancun e World moved to a clear many of the seven street in the real building, occupy 5 floors half. Compared to the past cramped office conditions, the environment has obviously improved a lot, with a large bay of cubicles and a large number of conference rooms. Before moving, some employees were "clerical" at Starbucks downstairs for 3 months. In a few months, these spacious cubicles will be filled with new recruits. The rapid development of a taxi is too fast, the early last year, there are only more than 30 people's team, now has increased to more than 400 people, the staff is still growing.

"No industry is so wonderful to start a business, wired on the cable, there is competition and shuffle, there is a high media attention, there are policy impact, there is a big factor, right?" If every venture is a TV show, this is a Korean drama, The bridge is too rich! Drop a taxi founder and CEO Cheng Wei has worked in Alibaba for 8 years, witnessed countless entrepreneurial company's vicissitudes of life, but did not think it was their turn to start their own business, the story is even more wonderful than others.

Only spent two years of time, to drop a taxi, quick taxi led by taxi software unexpectedly has profoundly changed the basic necessities of life "line" This event, it is really a bit incredible, but actually happened.

Now, in big cities like Beijing, two of mobile phones have become standard for many taxi drivers, a mobile phone to take a taxi to the live, the other is used to catch a quick taxi, and some drivers are specially equipped with a 4G network MiFi (a portable wireless router that can simultaneously access many mobile terminals), so as to grab good orders.

On the day of the move, Cheng Wei specially invited more than 10 drivers to attend the celebrations. After the simple ceremony, he took several of the drivers to his new office for further communication. "We communicate with the drivers more than once a month, and each department will have the drivers come and talk to them," he said. ”

This time, please come to the driver of a master Meng, has been 58 years old, has never used a smartphone, drop a taxi staff step by step to teach Meng teachers to open positioning, open mobile network, Rob single. There is also a master Liu known as "Rob Single King", up to one day to grab 35 orders, the average day has 20 or so orders. He is now able to do 100% of the work by dropping a taxi to pick up. Now every day he only in Zhongguancun, on the ground and his Huilongguan home between the wandering, can take enough work. By dropping a taxi, Liu said that the net income of one months now is 20,000 yuan, one times higher than before.

The continuous improvement of the product of the drop taxi, with the help of the drivers is inseparable. Earlier this year, the drop of a taxi to promote micro-letter payment before the driver to do a survey. Prior to this, the relevant departments have promoted the use of "bus card" to pay fares, but failed to succeed. Drivers say the reason: When passengers use "bus card" payment, but also two days after the arrival of their bank accounts, because they do not provide reconciliation functions, they are also very troublesome to check, and finally only choose not to. After listening to the driver's feedback, the drop of a taxi set up a special intermediary account, when passengers through the micro-letter payment, immediately from the intermediary account to the driver, and also send a text message to the driver to verify. Because of this, January 10 on the line of the drop of a taxi micro-letter payment function by the driver's strong welcome, many drivers in the passenger just on the bus strongly recommend this function.

Of course, the driver's recommendations also with the drop-by-taxi and quick taxi-sponsored subsidy war has a great relationship. At the beginning of this year, two companies almost simultaneously rewarded passengers and drivers, and the rewards soared to 15 yuan from the initial 3 yuan each. Both were meant to popularize the use of taxi software and online payments, but it became a war of attrition, after subsidies began to shrink, until May this year only gradually to abolish subsidies.

However, the subsidy war really played a role in educating users, even the streets of the big Uncle Aunt also know the software by taxi. From the start of the war to the end of March, drop a taxi to hand over a satisfactory report card: The number of users from 22 million to 100 million, daily orders from 350,000 to 5.2183 million, the order is even more than the same period of Taobao's mobile payment order volume. On the January 10, a drop-by-taxi also traded 350,000 orders on a daily average of 32 cities, reaching 3.16 million orders on the daily average of 120 cities on February 24, and by March 28, the drop was already in 178 cities, with an average daily transaction of 5.2183 million orders, a veritable internet speed.

Let Cheng Wei more proud that through their efforts, really changed the way people travel. In the common People's "basic necessities of life", although the clothing industry after 10 years of Taobao education, the proportion of online shopping is only 5%; The internet penetration rate of food "is only poor 1%, the proportion of" living "is even lower. At least in the taxi industry, people take a taxi every day already 30%-50% is by taxi software to achieve. Moreover, 60% of the drop-by-taxi users are called in WiFi, which means that a significant portion of the user has abandoned the old habit of waving a taxi by the roadside, but is waiting indoors for the arrival of the taxi. "The Internet in the traditional industry faster penetration, creating a drop in the rapid growth of taxi." "Cheng Wei thinks.

Of course, the drop of a taxi also paid a very expensive price. In the subsidy war, a drop in the taxi claimed that through the micro-letter payment of subsidies as high as 1.4 billion yuan, you know, drop a taxi at the end of last year to complete the financing amount is only 100 million U.S. dollars.

However, in Alibaba worked Cheng Wei understand that the most valuable resources accumulated through the taxi war is actually user data, and the business model of dropping a taxi is destined to be based on operating large data. Today, the drop-by-taxi has recruited the best algorithm experts and worked with a number of universities and research institutes to study how to continuously optimize the dispatch of taxis. Although the drop-by-taxi is now in Beijing's taxi success rate has been as high as 75%, big cities on average over 70%, but Cheng Wei that there is a great potential for ascension. Based on better scheduling algorithms, drop-by-taxi plans to launch carpool services to help more users hit the car. As for the drop of a taxi will be like the United States Uber and quick taxi and other peers, into a more clear profit model business taxi market, he smiled "too sensitive" and refused to answer.

In fact, with 100 million of users of data resources, drop by taxi has tried to obtain revenue through advertising. Some time ago, drop a taxi has launched a "to the National people to send Litchi", "to the National people to send cakes" activities, in fact, is to help businesses advertise. "In the next 3 years, the drop of a taxi must be used for free." However, we do not rule out some value-added services and advertising to support ourselves. Cheng Wei revealed that in May this year, the drop-by-taxi income of one month has reached 10 million yuan.

However, the crazy drag-and-drop taxi has repeatedly encountered vested interests of the powerful sniper. May 2013 drop a taxi out of Beijing into Shenzhen, has been the Shenzhen municipal authorities to stop. Almost every two months thereafter, there will be some city government departments to regulate the taxi market news. In order to deal with this increasingly complex situation, the drop of a taxi specifically formed a government public relations team of more than 10 people, responsible for communication with the government departments. To his concern, some local governments are both athletes and referees. But he remains optimistic about the future. "Drop in the weakest time to start a business has not been blocked, now more will not be blocked, the market will not reverse, China will not go backwards." ”

"Do you believe in the power of the market, the power of technology, the power of the Internet?"

Course。 He replied without hesitation. Today's Cheng Wei himself still keeps the habit of dropping a taxi every day, and he likes it.