Entertainment mogul: Starting his business with the internet

Chapter 393 Takeout and Ride-Hailing

In mid-March, spring returns to the earth, and flowers bloom in profusion.

The Weibo Night gala has come to a noisy close, and the entertainment industry has returned to calm, with no sensational news for the time being.

On the 10th, after celebrating her 25th birthday, Liu Shishi temporarily parted ways with her husband and set off for Nanjing to devote herself to the filming of "Silent Notebook".

Monday the 12th, a sunny morning, in a small conference room on the top floor of the Science and Technology Building.

Song Ci, Zhang Yong, and other senior executives of the group listened to a report from Shen Yangbo, president of the subsidiary Today's Choice, on the current status of the food delivery business.

On the electronic screen, Shen Yangbo's carefully prepared report materials were displayed.

"Mr. Song, our company's core customer base is currently concentrated in CBDs, science parks, and university towns in first-tier cities. These areas have a high concentration of white-collar workers and students, and the demand for food delivery is extremely high."

Song Ci examined the data reports on the PPT, her brows furrowing slightly: "In six months, Today's Choice has accumulated 445 million users and 4.8 franchised restaurants. This progress can only be described as very average."

In the second half of last year, he focused his main efforts on the global promotion of WeChat and WeChat, paying limited attention to the food delivery business. Now it seems that the development speed is unsatisfactory and has not met his expected goals.

Shen Yangbo remained calm and turned to the next slide of the PPT to continue his report: "Chairman Song, in the past six months, the company has accumulated rich operational experience."

With our own rider team gradually built and all the groundwork laid, I am fully confident that our business will enter a period of rapid growth this year.

CEO Zhang Yong chimed in, "President Song, most of the 400 million+ customers we have today were accumulated through on-the-ground promotion, with relatively little investment in subsidies. The company currently has ample funds."

If subsidies are increased, the user base could experience explosive growth.

Song Ci shook his head and said in denial: "This line of thinking is wrong!"

At this stage, prioritizing team building is certainly important, but in the current food delivery industry, Today's Choice has no strong competitors yet, making it an excellent opportunity to acquire customers at low cost.

We should fully leverage our first-mover advantage and rapidly expand our customer base through small, multi-round subsidies.

Zhang Yong has a background in finance and is exceptionally good at controlling operating costs and meticulous management, but he is somewhat lacking in long-term strategic planning and overall market planning.

Moreover, Song Ci excels in strategic planning but is not as good as Zhang Yong in daily operations management, so the two complement each other perfectly.

After listening to the chairman's analysis, Zhang Yong looked ashamed: "It was my oversight."

Now that the matter was in the past, Song Ci had no intention of dwelling on it. Instead, he solemnly advised: "Within six months at most, companies like Meituan and Alibaba will definitely take action. Today Youxuan must seize this last golden window and gain a competitive edge in the market."

Shen Yangbo immediately responded: "Don't worry, President Song, I will start making arrangements as soon as the meeting is over and increase the subsidy."

Song Ci then asked, "Have you encountered any practical difficulties in delivering food over the past six months?"

"Yes. After going through a winter, we found that keeping food warm during delivery is a key problem that needs to be addressed."

"Has the problem been solved?"

"It has been successfully resolved." Shen Yangbo looked smug. "We have partnered with Aima, a leading domestic electric vehicle company."

They jointly designed and developed a special electric food delivery cart with an attached temperature-controlled box, and applied for a patent. The company placed an order for 20000 units with Emma, ​​which alone would cost 6000 million yuan.

Song Ci praised, "This decision is very wise. Although it increases costs, it significantly improves service quality and raises the bar for the industry."

Other food delivery companies that want to compete with us will at least need to reach the same service standards. That'll keep newcomers busy for a while, so this money was well spent!

After receiving the boss's approval, Shen Yangbo straightened his back even more and his eyes shone brightly: "The company has now launched an automatic order dispatch system, which has completely replaced the manual order dispatch and order grabbing mode."

However, the system's path planning function is still in its early stages, and the dynamic route algorithm needs improvement, requiring support from the group's technical department.

Song Ci immediately promised: "There is no problem with that. I will instruct the big data center to fully cooperate and coordinate with you to optimize the algorithm and improve the daily delivery efficiency."

"There are no other matters that require the group's coordination for the time being, Chairman."

"Okay, I'd like to add a few more suggestions."

Shen Yangbo sat upright, his pen hovering above his notebook, intently awaiting instructions.

Song Ci's analysis is clear and logical: "Today, the priority should still be to build vertical advantages and provide differentiated services. It is recommended to sign exclusive takeout cooperation agreements with well-known restaurant brands, using 'restaurant-quality' takeout as a selling point."

Additionally, a dynamic pricing strategy could be tried, with slight price increases during the lunch peak and discounts offered during afternoon tea to attract customers and balance production capacity.

"Don't worry, Mr. Song, I've noted it all down and will implement it immediately when I get back."

"These are just directional suggestions; in practice, they should be flexibly adjusted according to the characteristics of the local market. Remember not to act rashly or blindly."

"Understood, we will proceed steadily and surely."

Song Ci nodded, speaking earnestly: "President Shen, the business strategy of Today's Choice is correct. What you need to do now is to solidify our reputation and improve efficiency."

The food delivery industry is destined for fierce competition; this protracted battle won't be resolved for at least three to five years. Don't worry about funding; the group will fully support Today's Choice. Just focus your energy on execution.

After the meeting ended, Song Ci returned to her office. A short while later, a knock on the door broke the silence.

"Come in."

After receiving permission, a middle-aged man in his thirties pushed open the door and entered. He quickly walked to the desk and respectfully said, "Chairman, I am Chen Shuo from Nuomi Time. I'm here to report for duty."

Chen Shuo was slightly nervous and uneasy, wondering why the chairman had specifically asked to see him.

I am just a business director at Nuomi Time, a subsidiary of Tengda Group. I am not even ranked in the entire Tengda system and rarely have the opportunity to step into the headquarters.

Song Ci closed the document, his gaze calm: "Sit."

Chen Shuo sat down at his desk, his posture ramrod straight.

The Song Dynasty poem begins directly: "Do you know Uber?"

"I've heard a little about it; it's an American ride-hailing company," Chen Shuo answered truthfully, his doubts growing.

“Uber was founded in 2009 and entered the European market last November. It has been developing rapidly and is expected to enter the mainland market within two years.”

Chen Shuo seemed thoughtful, then cautiously probed, "Are you planning for your company to be the first to launch a ride-hailing service?"

“Yes!” Song Ci paused, looking directly at Chen Shuo, “I’ve had HR search the group for a long time, looking for someone skilled in market promotion. After several rounds of screening, the HR department recommended you.”

Your former boss, Shen Yangbo, also highly praised your work ability, believing you are hardworking, adaptable, and capable. Therefore, I have decided that you will be in charge of the company's ride-hailing business.

Chen Shuo was overjoyed and speechless with excitement for a long time. He never dreamed that he would be chosen by the chairman and about to be promoted to president of the group's new department.

After a moment of stunned silence, he came to his senses, hurriedly stood up, and repeatedly expressed his gratitude: "Thank you for your guidance, Chairman. I will certainly live up to your expectations and make the ride-hailing business bigger and stronger." Song Ci raised his hand to gesture for Chen Shuo to sit down.

Chen Shuo bowed slightly and sat down again, his flushed cheeks and burning earlobes revealing his barely suppressed excitement.

"This is a market survey report on taxis in Beiping. Take a look."

Chen Shuo took the materials from the chairman with both hands and began to read them carefully.

Song Ci didn't urge her, turning her gaze to the computer screen to process work emails.

About twenty minutes later, Chen Shuo looked up and said, "Chairman Song, I've finished reading it."

"Tell me what you think."

After a moment's thought and organizing his thoughts, Chen Shuo said, "Currently, the empty taxi rate in the capital region is as high as 40%, but passengers still face the dilemma of 'difficulty in hailing a taxi'."

The company could develop an app that uses algorithms to match drivers in real time, reducing empty mileage and directly addressing this problem. This would alleviate the difficulty of hailing a ride and increase drivers' income.

Song Ci lamented, "The market potential is indeed huge, but there are many obstacles to starting a ride-hailing business."

Chen Shuo understood that the core issue lay in policy restrictions. In China, without a license issued by the transportation department, the ride-hailing business would be virtually impossible to operate.

Some domestic companies have already tried to imitate Uber by launching ride-hailing services, but their ride-hailing services have been classified as "illegal operations" by the transportation authorities. They have been fined and their vehicles have been seized, making it impossible for them to continue operating.

“Chairman Song, this is what I’m thinking: in the early stages, we will only provide third-party services, cooperate with regular taxi companies, optimize taxi passenger carrying efficiency, accumulate operational experience, and continuously improve the app algorithm through the accumulation of travel data.”

"That's a good idea." Song Ci nodded in satisfaction. Chen Shuo was quick-witted and could find a breakthrough based on just a market research report. He was indeed quite capable.

Having found a starting point, Chen Shuo had a flash of inspiration, his thinking became increasingly broad, and he spoke fluently and confidently:

“When expanding the ride-hailing service, we can adopt the model of ‘leasing company + labor dispatch driver’ to gradually tap into the market and wait for the regulatory policies to be relaxed.”

Song Ci couldn't help but clap his hands in praise: "The Ministry of Human Resources and Social Security has recommended a very capable person to me this time."

Chen Shuo responded modestly: "You flatter me. I only have a little quick wit, but my cleverness is nowhere near as good as your foresight and wisdom."

Song Ci chuckled lightly, seeing a resemblance between Chen Shuo and his beloved general Tang Jun.

He immediately announced: "I have named the ride-hailing company Speedata, which will be renamed Today Speedata in the future. Like Today Priority, it will be a core subsidiary of the group. And you will be the president of Today Speedata."

Chen Shuo was overjoyed: "Thank you for your guidance, Chairman Song."

A mischievous glint appeared in Song Ci's eyes, and he uttered a startling statement: "You should go through the resignation process tomorrow."

Chen Shuo froze instantly, completely bewildered. Just a moment ago he was looking forward to the future, but now he was being asked to resign. This dramatic turn of events left him at a loss.

"Chairman Song, I..."

Song Ci explained with a smile: "The ride-hailing business is highly sensitive, as it involves transportation policies. Therefore, I will arrange for several shell companies to hold shares in Speedata."

On the surface, it has no connection with Tengda Group. When the time is right, it will be brought back into the group through capital injection.

"I see," Chen Shuo breathed a sigh of relief. "I understand, Chairman Song."

"The group will secretly provide assistance to you in terms of app development and company operations. You don't need to worry about logistical support; just focus on developing the front-end business."

I will give Suda 2000 million yuan in start-up capital. You should prioritize developing the two major cities of Beijing and Donghai. Once the business in these two cities is stable, you can gradually expand to other first-tier cities.

After the deployment was completed, Song Ci encouraged him with a firm gaze: "The ride-hailing business is bound to be difficult to develop in the early stages, and you must be prepared to fight a tough battle."

Chen Shuo's face turned serious: "Don't worry, I've endured all kinds of hardships when I was promoting Nuomi Time on the ground! With your support, I'm confident I can win this tough battle."

"The group will sign an agreement with you, and you will receive stock options as a reward upon your success."

Song Ci promised a great reward, which made Chen Shuo so excited that he was incoherent: "Thank you, thank you so much."

After calming down, Chen Shuo respectfully asked, "Is there anything else I should be aware of?"

Song Ci paused briefly, then said, “One of the company’s core strategies is to promote mobile payment, so while you are expanding your business, you should prioritize completing the payment loop.”

Encouraging customers and drivers to use WeChat Pay is a good strategy, as the group provides regular subsidies for WeChat Pay.

At this moment, he was already rehearsing a subsidy war in his mind. The sooner customers started using WeChat Pay, the sooner they would develop the habit.

Chen Shuo took a deep breath and said firmly, "Speedy will become the Uber of China and will also help WeChat Pay. Just wait for my good news."

The confidence of his subordinates also inspired Song Ci: "Speedy is not lacking in technology and capital; the key to success or failure lies in product competitiveness, on-the-ground execution, and policy sensitivity."

"The future depends on how you seize it. Right now, Speedata has no competitors in the market, giving you ample time to develop your strategy. I hope you won't let me down."

After finishing the business, Song Ci's tone softened: "Your salary will be based on the standards for the group's department president. The company will arrange an apartment for you, and a company car will also be provided. Is there anything else you need?"

"That chairman, I heard..." Chen Shuo hesitated, then stopped himself.

Seeing Chen Shuo hesitate, Song Ci urged, "Speak your mind."

"Chairman Song, I heard that the group has a housing security plan, where senior executives can apply for interest-free loans of up to 100 million yuan."

My girlfriend and I have our eye on a house, but we're short a bit for the down payment. We were thinking of borrowing from relatives and friends, but I'm wondering if I'm eligible to apply for a loan?

"No money to buy a house?" Song Ci was taken aback, extremely surprised: "How long have you been working? How come you can't even afford a down payment?"

Chen Shuo scratched his head awkwardly: "Chairman Song, I'm 32 this year and have been working for seven years."

After graduating with my master's degree, I joined Nuomi.com and later became an employee of Tenda.

My girlfriend has her eye on Shenggu Yuyuan, a new development in Chaoyang District that's about to open. The average price is 5 yuan per square meter, and an 83-square-meter unit would cost over 400 million yuan.

My parents are from the countryside and can't help much. They've saved up some money over the years through frugality, but it's still a bit short of the down payment.

Upon hearing this, Song Ci sighed, "Your benefits are the same as the group president's, so you naturally enjoy the housing plan."

"Thank you, Chairman Song!" Chen Shuo had lost count of how many times he had said "thank you" since he entered the office.

“Living in the capital is not easy!” Watching Chen Shuo quietly close the office door, Song Ci sighed, pondered for a long time, and dialed the office phone: “Director Jiang, come over and bring the group’s welfare policy for ordinary employees.”

(End of this chapter)