Winning the new financial era

Chapter 181 Refined Operations

With the further intensification of competition in the shared bicycle market, major bicycle companies have entered the "subsidy war" and "car manufacturing war".

Zhang Yida predicts that a large wave of shared bicycle companies will be eliminated from the market.

as predicted!

Zhang Yida was playing TikTok in the office when Huang Xiaofeng opened the door and came in and said, "Mr. Zhang, some shared bicycles have closed down."

"Who? Who's out of business?"

Zhang Yida put away his phone and asked, thinking how fast it was!

"Wukong Bike!"

Huang Xiaofeng handed the phone to Zhang Yida and said.

Zhang Yida took the phone and looked at it. An eye-catching headline was magnified - "The First Bike Sharing Company Failed in the Country".

The content is probably like this:

Due to the loss and damage of a large number of bicycles, the company decided to withdraw from the shared bicycle market from July 2015, 7.

All users are requested to start withdrawing the deposit, and the service will be officially suspended from July 7st.

The founder said: I have thought about some profitable methods before, such as car body advertising, or installing a display screen on the car, and extending the development of big data.

I also thought about cooperating with companies, selling the car rental income to companies, and distributing transportation subsidies to employees. For example, 10 yuan of cycling coupons can be sold to companies for only 5 yuan, and companies will distribute them to employees as benefits.

Unfortunately, all attempts failed!

A total of 1200 bicycles were released before and after, and 90% of the bicycles have been lost and cannot be found, resulting in a total loss of millions of yuan.

The founder summed up the failure experience this time and told the following entrepreneurs:
"Don't blindly chase the wind when starting a business. You don't have to catch up with the wind, but you have to wait for it to emerge. You need to cultivate deeply in an industry, and you will be prepared when the opportunity comes.

In addition, the earliest companies in the industry can also be made, which is a first-mover advantage.

Later people don't go in if they don't have ten times the strength and resources.You can't do much, and the head resources are too concentrated. "

Zhang Yida thinks this is a sensible person. Huimin Bicycle has launched more than 170 million bicycles and has entered operation in more than 100 cities. Why are you here to join in the fun?

Please don't jump the moths into the flame, okay?
Come in and start a price war, you guys are fine, you only lose 100 million a month, Huimin bicycles are so big, your monthly loss is hundreds of millions!
"Old Huang, what do you think?"

After Zhang Yida finished watching the news on his phone, he handed the phone back to Huang Xiaofeng and asked a question.

"What do you think? It's normal for Wukong Bike to go bankrupt. Our industry seems to have a very low threshold. With a little money, one or two thousand bicycles can be built for fun.

In fact, the biggest barrier in this industry is capital.

Shared bicycles can also be regarded as an asset-heavy industry, and every bicycle produced is an asset.

If you don't spend billions in this industry, you can't make a big wave.

One or two thousand bicycles are estimated to be enough to cover a prefecture-level city. "

Huang Xiaofeng expressed his own opinion, not looking down on anyone, but analyzing the problem objectively.

Zhang Yida also agrees with his opinion. If Wukong Bike is the first company to launch shared bicycles, there may still be a chance.

As a company that entered the shared bicycle industry later, it has actually entered a disadvantage.In terms of financing, if there is no advantage, it will be even worse.

"It seems that the founder of Wukong Bike launched the first batch of bicycles and recruited investors across the country to engage in crowdfunding.

After confirming the financing intention of 3000 million yuan, only 13 yuan was finally implemented.

Bike sharing is not an industry where investment returns quickly.This industry requires continuous and persistent investment in order to be rewarded.

Under such circumstances, how could Wukong Bike survive? "

Wukong Bike, as the first shared bicycle company that went bankrupt, has some analytical value, and Huang Xiaofeng added a few more words.

"I see that Wukong's bike was lost and damaged by 90%? It's a bit shocking!

What is the loss and damage rate of our Huimin bicycles? "

Zhang Yida still sympathized with the founder. After all, so much money was spent in real money, basically it was all in vain.

Seeing what happened to him, it reminded me of the loss and damage rate of Huimin's bicycles.

There was a bicycle damage incident in Yuzhou some time ago. Zhang Yida played the trick of "killing the chickens to scare the monkeys". I wonder if he has controlled the loss and damage rate of Huimin's bicycles?

"We all cooperate with the world's largest supply chain manufacturers, and the quality of bicycles is guaranteed.

Wukong bicycles are different. They cooperate with small manufacturers, and the quality of the bicycle itself is not good, so the damage rate is very high. "

Huang Xiaofeng first compared the two sides, and added:

"Damage and loss of bicycles cannot be completely eliminated.

But Mr. Zhang, the press conference you held in Yuzhou last time was still very effective.

The loss and damage rate of bicycles has dropped a lot. At present, about 90% of our bicycles are still in normal operation.

This data is already much better, and the damage and loss rate was shocking some time ago.

I guess many people are still afraid, and they might go to jail if they get caught.

If you ask me, this unhealthy trend should be killed. "

When this matter was mentioned, Huang Xiaofeng's teeth itch with hatred.As the largest shared bicycle company in the country, Huimin is also the most damaged and lost in terms of quantity.

"90%, barely within the range of psychological tolerance!"

Zhang Yida's expression turned pale. Huimin Bicycle's latest batch of 100 million bicycles has been put on the market for less than three months, which has reduced the damage and loss rate by a lot.

Last year's 72 bicycles, the damage and loss rate should have exceeded 20%...

Heartache, the manufacturing cost plus shipping costs, the cost of a bicycle is 1000 yuan, 17 is 1.7 million.

If the labor cost of dispatchers is included, the cost of manufacturing, launching and operating a bicycle is far more than 1000 yuan.

"By the way, for those damaged and lost bicycles, you can send an instruction to the operation dispatchers in each region to look for them, and try to recycle them as much as possible!
Every time a discarded bicycle is recycled, a commission of 30%-50% of the recycling price will be paid to the dispatcher.

It was picked up by the waste collector, and we didn't have a penny.It's better to use this money to distribute benefits to offline dispatchers.

But there is one thing to pay attention to, don't be taken advantage of by some people, damage the good bicycles and take them back to the company for money. "

Zhang Yida thought of the "bicycle cemetery" in his previous life that made people with intensive phobia go crazy after seeing them.

In this life, try to avoid this phenomenon.

Regardless of other car companies, Huimin Bicycle must maintain its brand image.

"Okay, I suggest setting up several recycling factories. After the discarded bicycles are recycled, they are disassembled into parts, and the parts that can be reused can be reused.

Not only save costs, but also save resources.

While maintaining our brand image, we can also appropriately reduce some operating costs. "

Huang Xiaofeng drew inferences from one instance and came up with another good idea.

"This is a good idea, let's build a recycling factory according to the region and the density of bicycles!
You discuss it with Fujitec, and invite them and some parts suppliers to join in the individual shares.

They are better at doing this.We mainly focus on shared bicycle operations. "

Zhang Yida thought for a while and decided to recruit people to join the group.In business, what Zhang Yida admires is to gather the strengths of others and make up for one's own weaknesses.

"By the way, Huimin bicycles can see which bicycles have not been used for a long time.

This part of the bicycle needs to organize manpower to overhaul.

We want to achieve: more than 95% of the bicycles put on the market can be ridden normally.

This is also a step to improve our brand image.

If you think about it, if a user is in a hurry to ride a bicycle, he looks around and finds that all the bicycles are broken, Huimin bicycles can ride normally.

If things go on like this, users vote with their feet, and they all know which bicycle to become a loyal user of.

In the short term, the implementation of these measures will increase our operating costs.

But in the long run, these measures to improve user experience will be transformed into brand influence and market appeal. "

The bicycle sharing war has begun, and Zhang Yida is also ready for a protracted battle.

Some of these opponents in the market will collapse on their own, and some may get reinforcements.

The refined operation method is to deal with these competitors who may get strong support.

"Okay, next we will arrange some bicycle maintenance training for offline dispatchers in more than 100 cities.

Let every dispatcher learn some simple maintenance skills for bicycles.

In the process of offline inspection, they can repair some bicycles with less damage.

The severely damaged bicycles will be transported back to the operation centers in various places for overhaul. "

Following Zhang Yida's train of thought, Huang Xiaofeng made more detailed thinking and supplements.

"Is the money in Huimin's account still enough?"

Sharing bicycles is a bottomless pit. The more bicycles are put in, the greater the loss.

Looking at the increasing losses every month, Zhang Yida felt a little anxious.

"The last round of financing cost 3 million U.S. dollars, equivalent to 18.45 billion yuan. It cost 10 billion yuan to build cars, 1.5 million yuan to purchase and dispatch transportation vehicles, 70 million yuan to open 6000 new operation sub-centers, and 1.46 million yuan to personnel salaries. , R & D investment of more than 4500 million...

Counting the revenue during this period, the bicycle riding revenue is 1.56 million, the advertising revenue is 0.82 million, and there is a total of 6.82 million yuan. "

Huang Xiaofeng carefully reported the recent financial expenditure and income to Zhang Yida.

"The monthly fixed expenses include: salary of about 5000 million yuan, advertising expenses of about 1000 million yuan, research and development expenses of 1500 million yuan... not counting the depreciation of bicycles, the miscellaneous things add up to nearly 8000 million yuan.

In terms of income, the monthly riding income is about 5000 million, and the advertising revenue is 2700 million, which adds up to nearly 8000 million.

If the depreciation of bicycles is not included, will the revenue be balanced soon? "

Zhang Yida simply calculated his income and expenses, and asked Huang Xiaofeng.

"You can say that." Huang Xiaofeng nodded first, then sighed and said:
"But with the launch of shared bicycles, it is estimated that the income from cycling will drop sharply.

Fortunately, in the past few months, we have sold more than 200 million cycling cards and locked in a lot of revenue in advance.

However, the situation is not particularly ideal. Users are very cautious. 70% of them buy monthly and quarterly cards.

In addition, users who did not buy a membership card also contributed nearly half of the revenue.

If there is a subsidy war and free rides in the future, I estimate that our monthly revenue will drop by 5000 million...

The cooperation with Ruimin Wealth Management is still very pleasant. We have deposited deposits of more than 1200 million users in Ruimin Wealth Management, and the scale is about 38 billion.

In addition, this quarter also diverted more than 70 billion funds to them through advertising.

In the future, I expect the income in this area will continue to rise. "

"We still have a 14.4 billion bet with the B-round venture capital institution. According to this progress, it may not be easy to complete.

I will negotiate with Ruimin Financial Management and ask them to transfer some of the profits. "

Zhang Yida is not worried about the shortage of Huimin Bicycle's funds now, and there are more than 6 million yuan in the account. According to this progress, it can definitely support losses for another 12 months.

This quarter's revenue of less than 2.4 million made him a little panicked, and he might lose the bet with the venture capital...

I haven't lost the bet with the venture capital before, and I can't be broken. I have to find a way out quickly.

"By the way, how is the communication with Grab going? When will the first batch of bicycles go overseas?"

Zhang Yida has already thought of a way to complete the bet in his mind, and he needs to cooperate with the news of the bicycle going to sea.

"It has been communicated that the first batch of 1000 bicycles will appear on the streets of Singapore next week.

The name is also named, and Yimin translates it into English as "benefit the people", so the bicycles that go out to sea are named "BTP.bike".

In terms of equity, we produce technology and bicycles, holding 70% of the shares, and Grab is responsible for the Singapore market operation, accounting for 30% of the shares.

Subsequent shareholding ratios will be renegotiated according to their respective resource inputs. "

Huang Xiaofeng reported with a smile that he, the CEO, also feels very proud and has a sense of accomplishment when he goes abroad by bicycle.

"Okay, let's put this matter in place. Singapore is the first stop to go to sea, and we have to make some achievements."

Zhang Yida ordered, and at the same time said in his heart: Hurry up and make some noise, the B+ round of financing is imperative.

(End of this chapter)