Reborn: Billionaire in College

In the past, Chen Pingjiang didn’t understand why Boss Jia failed, but now he finally understands.

With LeEco's tiny profits, if it weren't for the stock price, it would have gone bankrupt eight hundred times. How could Jia have the money to continue making mobile phones and cars and to engage in mergers and acquisitions everywhere?

In the news video, according to the official statement of Yidao and LeTV, "this marriage is mainly to jointly plan the field of car sharing and social operations."

Boss Jia expressed it this way: "LeEco has fully opened up its automotive ecosystem in terms of technology, business, resources, marketing, and capital. The strategic investment in Yidao will fill a crucial link in this closed ecological loop."

But in fact, from the perspective of capital concept, LeTV has also created a new big car concept, directly forming a three-way battle situation with Uber and AutoNavi in ​​the field of mobile travel. It is estimated that LeTV's stock price will climb a lot again, and then the hundreds of millions of dollars thrown out will be immediately returned.

"Wow, $7 million to acquire 70% of the shares, what a big deal. As for the ecosystem and Internet+ mentioned in it, they are all gimmicks, and the essence is just to increase the stock price. Boss Jia doesn't have the fate of Alibaba, but he wants to be the next Alibaba."

At AutoNavi's Beijing headquarters, everyone gathered together to discuss the new changes and new patterns that LeTV's acquisition of Yidao might bring to the travel industry.

"Since Mr. Jia wants to get in so badly, why doesn't he just buy Uber? One wants to buy and the other wants to sell, isn't that just right?"

Chen Pingjiang smiled and shook his head: "This is where he is smart. In the eyes of many people, Uber is better than Yidao in terms of market share and brand influence, but LeTV chose Yidao and abandoned Uber. There are many reasons for this, but I guess he thinks Uber has too many shareholders and it is difficult to control. Moreover, Uber China is valued at 70-80 billion yuan, and his money is not enough to control it."

Chen Pingjiang changed the subject and said, "But if we use Yidao to merge Uber China, it will undoubtedly be another classic case of a small company swallowing an elephant. After all, if we buy Uber, the price may not be negotiable, but if it is a merger, the imagination is much greater, and most Uber shareholders will agree."

Why do you say that?
Uber China is in such a bad state right now. If the asking price is too high, Mr. Jia will not be able to afford it and will certainly not buy it. If the asking price is too low, the shareholders will not be willing to lose too much after calculating.

In this case, merging Yidao Car and Uber China seems to be a good solution.

At least in the eyes of the public, LeEco is still a star enterprise and is trustworthy. The new company after the merger has severed its ties with Uber, and has fewer ties, so it can move forward with less burden. Boss Jia does not need to pay any more money, just exchange shares.

The market share of the new group after the merger is close to 10%. If it can work hard to reach 20%, there will be hope of going public.

By then, shareholders can still make a profit.

There is room for imagination in merging and then seeking a listing.

It's just a pity that the account is not calculated that way.

As a Chinese New Year person, Chen Pingjiang has seen through it.

After the acquisition of Yidao Car Rental, Boss Jia's already precarious financial situation became even worse.

It was also the beginning of all the downhill journey.

Cheng Wei said: "The merger of the second and fourth in the industry will not have any impact on us. Our opponents are not very good, and we are too strong. Even if we stop now and let them catch up, they may not be able to catch up."

Chen Pingjiang did not blame Cheng Wei for his pride, but nodded affirmatively.

After all, Didi was taken off the shelves for 18 months. Facing the crazy siege from various competitors, Guangmingding finally did not fall. It only lost 10 points of market share, making it difficult for competitors to survive.

Cheng Wei naturally has the confidence to say this, not to mention that AutoNavi is now behind Didi.

The trend is already set, not to mention that they are not in the same dimension at the technical level.

In the past two years, AutoNavi has cooperated with thousands of leasing companies, hundreds of driver service companies, and dozens of financial insurance companies. These partners cover the fields of car rental, insurance, energy, maintenance, and driver training, and have established an online car-hailing ecosystem that serves millions of drivers.

This ecosystem is dedicated to serving every aspect of drivers, from registration, car rental, contract fulfillment to safety supervision. Gaode has very high control over non-private car drivers, and the classification of business is relatively complete, achieving closed-loop management from 2C to 2B.

In comparison, other platforms do not have the complete driver services of Amap. Users may choose other platforms because of the temporary price, but in Amap's ecosystem, the switching cost for drivers to leave the platform is much higher than that for users.

In terms of algorithms, Amap’s products are even more terrifying.

Every car and every driving route is a sensor of Amap, providing data support for Amap's algorithm. After combining with Amap Map, a huge amount of data will be generated.
Using data to empower business, improve service efficiency, reduce business costs, and create a complete set of travel solutions is the basis for deep competition in the online car-hailing industry. Chen Pingjiang dares to say that no other company in the world can do this.

The moat was dug very deep, so that unless Gaode himself died, he would never be caught up by his opponents.

When it comes to intangible assets, switching costs, network effects, and cost advantages, Amap has a firm grasp on these four aspects.

When your competitors know your secrets but are unable to imitate them, you have this structural competitive advantage, which is a company's truly irreplaceable moat.

………………

The development of the plot was just as Chen Pingjiang expected. Just half a month later, Yidao Car and Uber China quickly reached an agreement.

Through complex equity swaps, Yidao Car and Uber China merged.

Uber has completely cut off its ties with the Chinese market and sent all its resources into the hands of Boss Jia.

The specific shareholding ratio after the merger is unknown to the outside world. But Boss Jia did have the last laugh, kicking out Liu Zhen and becoming the chairman of the group.

Go back where you came from.

In just two or three years, Uber came and went, and eventually everything returned to calm.

The story of Uber ends here.

Boss Jia entered the travel war at the very end, took advantage of the situation and won two cities in a row.

Chen Pingjiang was not worried about this at all.

The potential of Yidao Car Rental ends here.

Boss Jia acquired it purely for the stock price and to serve the LeEco ecosystem, not because he really wanted to run it well.

There is no such thing as spending money to start a subsidy war. Whether before or after the merger, the two companies are still very poor and cannot beat Gaode at all.

Finally, the smoke of the online car-hailing battlefield has settled, and just like the group buying track, the pattern has been determined and all major forces have been restricted.

We will have to maintain a competitive situation in which you are in me and I am in you for a long time to come.

It was the same place where they had dinner last time, and Cheng Wei and Liu Zhen met again.

This time, Liu Zhen was less aggressive and gradually became calm.

"You won't go to Shanghai anymore, will you?"

"Of course I won't go there again. That's my sad place. Beijing is my home. Now I'm saying goodbye to the sad place and going home to heal my wounds."

In the end, Liu Zhen became the scapegoat, with the blame for Uber's failure in China firmly pinned on her head.

Recently, there have been a lot of comments about it on the Internet, most of which are critical.

One general's success is the result of the sacrifice of hundreds of soldiers; business wars are also cruel.

If Xiao Dai of ofo fails, it will all be his fault. If ofo succeeds, he will be a child of destiny.

History has always been like this. (End of this chapter)