Together! Quick Taxi and drop taxi announce strategic merger

Recent rumors of a lot of drops of taxis and quick taxi merger, in today's Valentine's Day (February 14) is settled. This morning, a drop of a taxi and a quick taxi jointly issued a statement in micro-blog, announced two to achieve strategic merger ...

After the merger, the new company will implement CO-CEO system, drop the taxi CEO Cheng Wei and Quick Taxi CEO Lu Zhunwei also as joint CEO. The two companies remain unchanged in their staffing structure, the business continues to evolve in parallel and will retain their brand and business independence. The merger will end the escalating scramble for users, creating a company that dominates the taxi and car markets, and the Wall Street Journal reported a combined market capitalisation of $6 billion trillion.

It is reported that after the completion of the strategic merger, Quick Taxi will retain its brand and platform independence, and help strengthen and improve the business of dropping a taxi. The strategic merger has been approved by the Board of Directors of both parties, but after the completion of the merger, it still depends on the terms of the management deal, including the drop and quick approval of both shareholders. Representatives of both shareholders on their respective boards have pledged to support the merger. The merger is expected to hold a press conference after the Spring Festival.

For two companies to develop after the merger, the relevant people said that the capital for the taxi market is still more optimistic, the merger of the two major giants is a good signal, on the one hand, the merger will end the escalating competition between the two sides, creating a taxi and the car market dominant company On the other hand, the advantages of resources integration will bring rapid growth.

The person also said that before the merger of the rapid management of the case is completely non-existent, after the merger in a longer period of time both will coexist development, the business may do some partition and differentiation. With the current drop of the latest round of each more than 3 billion U.S. dollar valuation, the new company market capitalisation or more than 6 billion U.S. dollars.

Another analysis argues that the current drip is only in the taxi and car leading, but in the entire travel area can do a lot of business, including driving, bus, and even the City Express, "need enough manpower and financial support, I believe not only will not be reduced, or even quickly expand the hands." "Moreover, the exact message shows that Baidu is matching Uber and easy to merge," facing Uber such a huge opponent, who dare to lightly? ”

There is a view that the merger will no longer have a large area of burning money phenomenon. The internet industry said that the phenomenon of crazy subsidies will not be a long time, the future development of both will gradually tend to normality, "free lunch is the most expensive", of course, the subsidy should be gradually reduced, will not cut off a knife.

Quick Cab CEO Lu Zhunwei in an internal mail today to explain the merger.

Lu Zhunwei said that, in addition to the mutual bullish on the mobile travel market, there are other factors to facilitate the merger, including:

--Vicious, massive, sustained burning of money, unsustainable competition

--merger is a strong expectation of all investors on both sides

In addition to financial factors, the merger can avoid more time and opportunity costs, the new company can quickly accelerate the launch of a lot of new business.