Lu Zhunwei: Temporary loss is the necessary cost

Absrtact: Lu Zhunwei: Fast drip will still be a long term competition two years ago, most of us still can only choose to wait in the cold, or to compete for taxis; two years later, some of us have been accustomed to using taxi software to take a taxi or book a car, learned wisdom
Lu Zhunwei: Fast drops will still be long term competition

Two years ago, most of us could only choose to be in the cold or wait, or for a taxi; two years later, some of us have become accustomed to using taxi software to take a taxi or book a car, and learn the "smart trip". The same is two years ago, or Silicon Valley technology company executives Lu Zhunwei, from the experience in the domestic business trip to see the "taxi difficult" behind the rigid demand, the global wisdom of travel entrepreneurial hot, let him resolutely decided to return to business. Today, Lu Zhunwei is the head of the fast-intelligence group has a quick taxi and a car two travel brands. Internationalization expansion, eliminate drivers misunderstanding, mining user needs, explore the commercial path, product refinement operations ... Quick Wisdom Group chairman, Quick Taxi Chairman and CEO Lu Zhunwei accepted the Beijing Times exclusive interview, said the industry changes too quickly, the next thing to do there are many.

-Future planning

The duopoly pattern is unchanged for a long time

Jinghua Finance: Can sum up, from 2012 to now, the whole industry of taxi software and quick taxi all happened what change?

LV: The most obvious change is from the original team of several people into a 800-person scale of the company, with the growing team, the management system, the importance of the process slowly reflected. On the business level, from a quick taxi to a car, also expanded a lot of urban travel related services.

Industry, at the end of 2012, the beginning of 2013 to do a taxi application of more than 30 companies, relatively all are regional companies, the competitive environment is more disorderly and chaotic, to 2014, taxi cab application of this piece is left two companies.

Jinghua Finance: What do you think is the milestone event of industry development?

LV: When you start to do marketing, users do not understand this application, to the initial acceptance, and then to the payment mode changes. In addition, the expansion from taxi business to about car rental business is also a very important milestone. and policy-related changes are also many, from the beginning of the unclear signal to the recent relevant leading departments of the taxi software affirmation and encouragement of attitude, meaning is very significant.

Jinghua Finance: How do you judge the future pattern of the taxi application industry?

LV: The overall market pattern is a stable duopoly compared to the early 2013, a lot of things happened in this process, everyone (fast and drip) for the cultivation of the market has burned a lot of money, but by 2014, two in the market share has not changed too much, the future will be the state of duopoly for a long time.

Jinghua Finance: What is the main competition between taxi software in the future?

LU: The overall urban travel business to the refinement of the operation, refinement of the technology and other aspects of the development of a lot of things can be done. In fact, the bigger competition is not the competition in the industry, but to the more people who have not used mobile phone to use a taxi to convert to our users, this is one of the focus of our work.

Temporary loss is the necessary cost

Jinghua Finance: This year, the commercialization of taxi software significantly accelerated, quick taxi current revenue scale?

LU: The company's income is basically at the stage of rapid development, has reached tens, but this is not the focus of the current work. We still have to do the product, user experience, such as data driven this piece. Based on taxi technology how to reduce the running rate of empty cars further, and improve the order to meet the rate, is our work is the most important. As an internet company, we are convinced that if an enterprise provides services that can solve user problems and create additional value, the right business model and revenue model will naturally manifest itself.

Jinghua Finance: Is the company's loss margin the trend of reducing?

LV: Compared with the one or two-quarter subsidy war this year, our losses have shrunk significantly, but how the company develops is also related to the future competition pattern. We regard the temporary loss as the necessary cost of market education.

Jinghua Finance: Do you plan to dock with Ali's electric and O2O resources quickly?

Lu: We and Ali have this aspect of discussion, which has achieved a more mature payment of cooperation. In addition to Ali, we and many other partners are doing a deeper discussion, including the O2O of urban life. We have earlier planned to co-operate with drivers ' restaurants, supermarkets and other businesses to offer incentives to drivers, and some attempts have been made, which are in fact part of the local life service sector. From a static point of view, travel is only connected to the city life of A to B point, but through product and technical input can be dynamic activation, travel and local life connection will be more interesting.

-Limousine Service

Car or revenue main source

Jinghua Finance: What is the daily order quantity of the quick taxi and one car?

LU: Quick taxi day orders for millions, and last year, compared to the difference of order of magnitude; about car rental business (Limousine business) recently developed quickly, personalized travel is still a big demand.

Jinghua Finance: Quick Taxi and a car what is the current income model?

LU: The former is mainly advertising, the latter is mainly divided into commissions. Taxi this piece, we are not in a hurry to increase the size of the revenue by charging, because this piece has more to do more solid, and about car rental, whether the profit model or business model is very clear. About the car rental business may be relatively new in China, but in developed countries this is a very mature industry. We are now working with qualified car rental companies to achieve revenue sharing, the proportion is not fixed, at different stages and different geographical markets to maintain a high degree of flexibility, because about the car rental business is indeed very new in the country.

Jinghua Finance: Will the car rental business become the main source of revenue for the Express Intelligence Group?

LV: From now on, this assumption is established, it also provides a diversified, differentiated travel plan, with the development of China's economy, the potential of leasing business may exceed the taxi.

Jinghua Finance: Is it possible to introduce carpool, Peer-to-peer car rental, driving and other intelligent Travel service mode?

LV: This is also possible, we now position ourselves as a city of intelligent travel platform, with travel-related business We at the right time will have the right to judge and deploy. I'm sure we don't even have to wait until next year to see our new deployment.

Jinghua Finance: Does the Express Intelligence Group consider the listing issue?

LV: We do not have a clear timetable for listing, the listing is only a phased development, the product, user experience, etc. to do more solid, it will happen.

The limousine is a taxi supplement.

Jinghua Finance: Taxi drivers in some places to unload the taxi software as a means to boycott the car business, but also some passengers worry, because a lot of car drivers monthly income than taxi drivers, which led to taxi drivers into the car industry, and caused the taxi driver's reduction, how do you deal with?

LV: There is a lot of misunderstanding, although the potential of the car rental business is huge, but the national taxi between 1.2 million to 1.3 million vehicles, the number of taxis per day in between 30 million to 40 million, and about the daily order of the car rental can be almost negligible.

About renting a car for an appointment, not a business to recruit, and from the price is much higher than taxis, from the data of a car, the average customer unit price of 108 yuan/single, about 5 times times the price of taxi users, more is to meet the needs of differentiated and high-end demand. About the car rental business on the direct impact of taxis is still very small. As everyone slowly understand about what is the model of the business, I believe that misunderstanding will slowly dissolve, because the user group is very different, about rental car is just a supplement to the taxi service.

Jinghua Finance: How does the car rental business find a differentiated population?

LU: At present, mainly for high-end groups, such as law firms, investment institutions and other large enterprises to carry out targeted market promotion. At the same time, for people with special needs such as children, pregnant women, etc. to provide targeted services.

-Drivers Group

Insist on not looking for private car resources

Jinghua Finance: Some of the platforms in the market have opened up about car rental markets by soliciting private cars, although there is a certain policy risk, but because the rental company's car is limited, and the number of private cars is considerable, the speed of these platforms, the second-line below the city's permeability is also relatively high, how to deal with a train?

LV: A special car insist 100% with the formal rental company, drivers are leasing companies through the labor agencies sent over, there is no private cars and pure private drivers. About renting a car is a new industry, taxi business does not need to worry about service standards, because the standard of service by the taxi company and the authorities to develop, but the rental is much more complicated. Based on this, about car rental industry companies have their own rhythm and strategy, as for us, we should consider how to improve service quality, do a good job in marketing, adhere to their own rhythm.

Jinghua Finance: How to maintain a good relationship with the driver group?

LV: We make more use of taxi drivers and bus drivers as our partners. Taxi

After the driver used a quick taxi, excluding subsidized income, because the single increase in income generally increased by 20%. This income is even more significant, given the reduced empty rate and the empty consumption. So the driver feels that the change of interest is more direct than all things. On this basis, we think of drivers as our business partners, after all, we do not own taxi companies, leasing companies and cars. We often do networking with taxi drivers around the world to help them solve some problems, such as the Spring Festival to help buy train tickets, so that they feel our sincerity, now seems to be a good result.

Jinghua Finance: What is the difference between a limousine driver and a taxi driver?

LU: Taxi drivers belong to the taxi company, about car rental drivers are more through labor contracts and leasing companies to cooperate, which is a relatively large difference.

Jinghua Finance: Are drivers hard to find?

LV: It is not very difficult at this stage, we mainly rely on professional leasing companies to find, car driver induction to improve the urban employment rate has a certain significance.

-Business expansion

Market share in Hong Kong first

Jinghua Finance: What about the international expansion of taxi and limousine services?

LU: Quick taxi expansion to more than 300 domestic cities, but also the only one in Hong Kong and international Taxi Company with the competition of the taxi application company, our market share of more than 30%, is the first local. The car business is not yet extended to the Hong Kong market.

Jinghua Finance: How to promote international expansion?

LV: We rely more on our local team because travel is a highly localized market, especially in an international city like Hong Kong. For example, in Hong Kong will appear to the airport, the driver will take the initiative to demand a taxi, such things have not happened in the mainland, we will do some product customization.

The Southeast Asian market we are also doing some initial plans, but now mainly to do a good job in Hong Kong, which is our bridgehead to the international market.

Jinghua Finance: Your business is very wide, how to ensure the quality of service is high standard?

LV: Taxi standards are more mature, in the case of taxis in short supply, a lot of users are the main requirements in the case of a car can be hit. About car rental service standards for the formulation, implementation and supervision we have to do a lot of things, but also need some offline store service points to play the role of market training, operation and promotion.