Winning the new financial era

Chapter 193 Bike Sharing Second Half

"Yimin Bike Upgraded to Yimin Travel Group, Targeting Overseas Markets"

"In one year, the valuation ranges from 0 to 50 billion US dollars"

"Huimin Travel Won Ten Billion Financing, Supported by International Capital from Japan, Singapore, and the United States"

"Heavy news is coming!The overlord of shared bicycles received a huge financing of 15 billion U.S. dollars, with a valuation of over 50 billion U.S. dollars》

"Yimin received tens of billions of financing, whether the shared bicycle market has settled"

The news was spread at Yimin Travel's B+ round of financing conference. The financing agreement was signed, and Zhang Yida struck while the iron was hot, inviting media reporters and partners, and held a grand press conference.

The press conference was still in progress, and the manuscripts compiled by the reporter were sent out.

"Mr. Zhang, it is said that Yimin Travel is accelerating the deployment of overseas business. Can you tell us more about it?"

During the reporter's question session, a certain reporter raised his hand and asked Zhang Yida a question.

"Singapore and the United States are currently the countries that have landed, and the pace will be accelerated in the future to deploy more countries and regions."

The shared electric scooter has not yet launched an official product at this time, Zhang Yida did not want to expose it in advance, so the answer was rather perfunctory.

"Mr. Zhang, the financing for the benefit of the people is nearly [-] billion yuan. Will you expand the car manufacturing plan and increase the bicycle subsidies?"

"Yes, a new round of car-making plans will be launched, and no less than 500 million shared bicycles will be put on the market.

As for the subsidy intensity! "

Zhang Yida pretended to be mysterious, paused for a while, and then said again: "Hey! Keep it secret for now. We already have a new plan internally."

"Huimin Bike already occupies the No.1 domestic market share, and this time it has won a huge amount of financing. May I ask Mr. Zhang, what is your next goal?"

"The goals are many, and some are ambitious.

The first is to complete the overall business coverage of 278 prefecture-level cities in China. If there is spare capacity, it will continue to expand to 360 county-level cities.

Our expectation is to let more people enjoy the convenient service of shared bicycles.

The other is to achieve the strategic goal of 1 million registered users and more than 3000 million daily ride orders. "

After this financing, Zhang Yida decided: In addition to adding some bicycles in first- and second-tier cities, most of the bicycles will be distributed to third- and fourth-tier cities.

The third- and fourth-tier cities are all incremental markets, and many cities have no bicycles, so Huimin Bike has to go there first to seize the market.

"Mr. Zhang, according to an authoritative survey report, the total population of the four major first-tier cities is more than 7000 million. Based on the penetration rate of 2.5%, a total of 175 million bicycles need to be deployed.

But at present, the most anxious market competition is the first-tier cities, and the total number of bicycles is close to one million.

At this rate, the stock of shared bicycles in first-tier cities will soon exceed 175 million. Is there any suspicion of wasting resources? "

The reporter asked a very good question. Zhang Yida knew that the figure of 175 million vehicles would be surpassed soon.

Shared bicycles in the streets and alleys block the road, with three steps and one post, and five steps and one post.

But this problem is a little unsolvable. Let Huimin travel reduce the number of first-tier cities and focus on third- and fourth-tier cities?
That's certainly not realistic.

First-tier cities are places where everyone builds their brands. They are too important and no one will give up.

If major bicycles do not give up the market in first-tier cities, there will soon be a surplus of bicycles.

From a convenient tool that facilitates people's "last mile travel", it has become a big trouble that occupies and blocks the road.

"It will cause a waste of resources, so I call on the governments of major cities to issue relevant regulations as soon as possible to plan the number of bicycles and parking areas in each city.

Decide which car companies can enter the city to operate and the upper limit of the number of bicycles in the form of bidding.

Too much is too much, and I can't bear the fact that shared bicycles have changed from a convenient tool to a thing that adds congestion to the city. "

Zhang Yida said what was in his heart, he felt that shared bicycles were about to go back to the old road of his previous life.

The urban population in China is 6 million, and the best penetration rate is 2.5%, so the best number of vehicles in the industry is 1500 million.

Exceeding this amount will cause waste of resources and affect the cleanliness of urban streets.

Zhang Yida's words caused an uproar, and the audience "buzzed" into a ball.

The reporters are very excited, this is a big news!Industry leaders are asking for regulation.

Strange things happen every day, especially today!

The reporter with a quick brain has already started writing an article, and the title has been chosen, and it is called "The Leader of the Bike Sharing Industry Requests City Supervision".

Fingers are flying on the keyboard, and lines of text are written.Grab the headlines!
Another reporter asked:
"According to Mr. Zhang, what you mean is that after the shared bicycles reach saturation, other companies should not come in to compete. Is that what you mean?"

Of course Zhang Yida knew: this reporter had no good intentions and was making trouble.Staring at the reporter, he smiled and said:
"You can't say that, the choice lies with the city regulator.

Whoever has a good cycling experience and good management, the regulators will naturally choose which company to settle in the city.

From the perspective of the industry, I also appeal to my peers: healthy and benign development, not to engage in malicious competition. "

"Who engages in vicious competition? Zhang always said that he was the first to launch free rides like Little Blue Bike and Baimo Bike?"

The reporter asked again.

What a provocation!But Zhang Yida would not show any displeasure on his face, and said with a smile:

"Free rides help promote more users to register for bike-sharing apps and expand the user base.

From the point of view of marketing methods, it is understandable to carry out short-term operations.

But if it becomes the norm, it is digging its own grave.

For a company to develop in the long run, it definitely needs positive cash flow and profitability.

Without profit, what about research and development and improving user experience?

To be a business, you can't just talk about feelings.Venture capital is not a fool, has been burning money with you?
There is always a degree. "

Zhang Yida still decided to be a villain, to put some constraints on the gradually developing and disorderly industry.

If other companies want to go crazy, they can't drag Huimin's bicycle into the water.

Bearing the heavy pressure of gambling, if Huimin Bicycle has been pursuing the strategy of free riding, the revenue balance will not be achieved.

To occupy 80% of the market size of the industry, it can only be crazy and crazy to launch bicycles.

Then I embarked on the road of no return that shared bicycles in my previous life!
"Oh, Mr. Zhang, what you mean is that if a company wants to develop soundly, it must be down-to-earth, and it cannot burn money aimlessly, right?"

"Yimin has always insisted on this strategy, so the investment talents trust us so much and dare to invest 15 billion US dollars in us!
I don't care about other companies. "

Zhang Yida continued to apply eye drops, just to let these reporters who feared the world would not be chaotic spread the word to him, and it would be best to spread it to the venture capitalists.

In this way, it is not easy for other shared bicycles to obtain financing.If there is no financing, the entire industry will calm down and will not be ruined.

Doing so is indeed a bit of a loss.But in the long run, it does safeguard the interests of the entire industry.

……

After Yimin Travel Group’s B-round financing conference, Zhang Yida’s various opinions expressed at the conference were compiled into articles by reporters.

"Zhang Yida Appeals: Cities Increase the Supervision of Shared Bicycles, and Enterprises Return to Rationality"

"Zhang Yida said: Free riding cannot become the norm of shared bicycles, and it will undoubtedly die if it becomes the norm"

"Standing at the height of the entire industry, he called on everyone to develop soundly and not to engage in malicious competition"

This is not bad, some out of context is more interesting:

"Zhang Yida said: Venture capital is not a fool, shared bicycles offer free rides, and they will not be able to raise capital in the future"

"The optimal number of shared bicycles is about to reach its peak, Zhang Yida warns latecomers to be careful"

"After financing 15 billion US dollars, he told everyone: money should be saved and spent"

These articles quickly became popular articles on Weibo and WeChat.

Some people who eat melons said:
"Zhang Yida is too stingy. He has raised tens of billions of dollars, and he is unwilling to give users some benefits."

"That is, the richer you are, the more stingy you are. I will never ride Huimin bicycles again."

"Which Internet company does not have a free strategy when it goes online? I will ride whichever bicycle is free in the future."

Another calmer user said:

"Zhang Yida has a long-term view, and the number of bicycles really needs to be controlled. Including random parking and parking, they need to be supervised."

"From the perspective of business model, the depreciation cost and operating cost of shared bicycles are very high.

If you want to engage in free rides for a long time, if you can’t get financing, there is really only a dead end. "

Zhang Yida also looked at the reactions of people who eat melons on the Internet. Most of them support free rides. Only a small number of people don't care, and the monthly fee of tens of dollars is not expensive.

Many people said on the Internet to boycott Huimin Bike, but Zhang Yida didn't take it seriously. With the coverage and quantity of Huimin Bike, if you don't promote the free policy, there should be many users who are willing to ride.

If you stick to the free policy, people who say they don’t want to ride on the Internet will come to ride with a smile, and they have to say: It’s so delicious!

What really deserves Zhang Yida's attention is the response from local governments and bike-sharing practitioners.

The former received few responses, and only the Pengcheng City Government invited Huimin Travel Group to discuss it.

It is worthy of being an innovative city, and it plans to be the first to eat crabs.

But Zhang Yida wasn't discouraged, he started the pilot project in Pengcheng first, and with good results, it would be easy to advance to other cities.

Responses from bike-sharing practitioners were mixed. Some supported Zhang Yida and believed that bike-sharing should return to a normal business model and develop soundly;
We should also ridicule Zhang Yida, saying that he is alarmist and obstructing other companies from financing.

Anyway, praise and criticism are mixed. Except for some of the dozens of shared bicycle companies who have not spoken out, most of them are "inverted".

From their point of view, it is quite understandable.If the city's regulatory policies are implemented, most small businesses without capital, technology and sufficient operational capacity will be eliminated.

After all, there are only a small number of people who can obtain a city operating permit, and Huimin should be the biggest beneficiary.

And Zhang Yida appealed to everyone to develop rationally and not let everyone build bicycles like crazy, and he himself announced that he would build 500 million bicycles.

What does this mean?Typical double standard!

If you are a co-author, you have a lot of financing. With tens of billions of financing in hand, you have the strength and qualification to build bicycles.

Those of us who have raised tens of millions or hundreds of millions, can’t build bicycles?

Those who spoke out were all small fish, Baimo, Yong'anxing, and Xiaolan, who really attracted Zhang Yida's attention, kept silent and did not express any opinions.

Zhang Yida guessed that some small and medium-sized investment institutions should not dare to end his huge financing of US$15 billion!
The time for industry reshuffle is coming, which can be regarded as the second half of shared bicycles.

I don't know how Baimo and the others will react next?
Zhang Yida is most worried about Ari and Didi. Small and medium-sized organizations dare not quit, and these two shit-stirring sticks will definitely not give up.

Ari pays attention to strategic layout, and shared bicycles are destined to become a major traffic entrance, and Ari will definitely not give up.

In the case of Didi, it has started its own business. It has just merged with Kuaidi and received a lot of financing. It must continue to lay out the entire industrial chain.

There should be bigger actions brewing behind the temporary silence.

(End of this chapter)