With the further intensification of competition in the bike-sharing market, major bicycle companies have entered the "subsidy war" and "car-making war".

Zhang Yida predicts that a large number of bike-sharing companies will be eliminated from the market.

Sure enough!

Zhang Yida was playing with Shake Vision in the office, Huang Xiaofeng pushed open the door and came in and said, "Mr. Zhang, a shared bicycle has gone out of business." ”

"Who? Who's going out of business?"

Zhang Yida put away his mobile phone and asked, thinking that he was really fast enough!

"Wukong Bike!"

Huang Xiaofeng handed the phone to Zhang Yida and said.

Zhang Yida took the phone and looked at it, and an eye-catching title was put big - "The First Closed Bicycle Sharing Bike in the Country".

It looks like this:

Due to the loss and destruction of a large number of bicycles, the company decided to officially withdraw from the bicycle sharing market on July 1, 2015.

Please start withdrawing your deposit, and the service will be officially suspended from July 1st.

The founder said: I have thought of some ways to make money before, such as body advertising, or installing a display screen on the car, as well as extending the development of big data.

I also thought about cooperating with enterprises to sell the rental income to enterprises and issue transportation subsidies to employees, such as 100,000 yuan of riding coupons, which are sold to enterprises for only 50,000 yuan, and then issued to employees as benefits.

Unfortunately, all attempts failed!

A total of 1,200 bicycles were put into the market, and 90% of the bicycles were lost and could not be recovered, resulting in a total loss of millions of yuan.

The founder summed up the experience of this failure and told the entrepreneurs in the future:

"Don't blindly chase the wind when starting a business. The tuyere is not to catch up, but to wait out, you need to work hard in an industry, and you will be prepared when the opportunity comes.

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

Those who come after them don't have ten times as many troops and resources as they do, so they don't want to go in. You can't do it well, and the head resources are too concentrated. ”

Zhang Yida thinks that this is an understanding person, Huimin Bicycles have put more than 1.7 million bicycles into operation in more than 100 cities, what are you still here to do?

Please, don't moths to the fire, okay?

Come in and fight a price war, you are good, you only lose 1 million a month, the volume of Huimin bicycles is so large, the loss in a month is hundreds of millions!

"Lao Huang, what do you think?"

Zhang Yida finished reading the mobile phone news, and after handing the mobile phone back to Huang Xiaofeng, he asked.

"What do you think? It's normal for Wukong's bicycle to go out of business. Our industry seems to have a very low threshold, and with a little money, you can build one or two thousand bicycles to play.

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

Bicycle sharing can also be regarded as an asset-heavy industry, and every bicycle created is an asset.

If you don't throw billions in this industry, you can't make big waves at all.

One or two thousand bicycles is estimated to cover a prefecture-level city. ”

Huang Xiaofeng expressed his opinion, and he didn't mean to look down on anyone, but he was analyzing the problem very objectively.

Zhang Yida also agrees with his view, if Wukong Bicycle is the first company to launch a shared bicycle, there may still be some opportunities.

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

"It seems that after the founder of Wukong Bicycle launched the first batch of bicycles, he recruited investors and engaged in crowdfunding across the country.

The financing intention of 30 million was determined, and only 130,000 were finally implemented.

Bicycle sharing is not an industry with quick investment results. This industry needs a steady stream of persistent investment in order to reap the rewards.

Under such circumstances, how can Wukong Bicycle survive?"

Wukong Bicycle, as the first bicycle-sharing company to go bankrupt, has a bit of analytical value, and Huang Xiaofeng said a few more words.

"I think this Wukong bicycle is 90% lost and damaged?

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

Zhang Yida is still quite sympathetic to the founder, after all, so much real money has been wasted.

Seeing what happened to him, I thought of the loss and damage rate of Huimin bicycles.

There was a bicycle damage incident in Yuzhou some time ago, Zhang Yida played a trick to "kill chickens and make an example of monkeys", I don't know if the loss and damage rate of Huimin bicycles has been controlled?

"We work with the world's largest supply chain manufacturers, and the quality of our bikes is guaranteed.

Wukong bicycles are different, they cooperate with small manufacturers, and the quality of the bicycles themselves is not good, so the damage rate is very high. ”

Huang Xiaofeng first made a comparison between the two sides, and then added:

"There is no way to completely eliminate the damage and loss of bicycles.

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

The rate of loss and damage of bicycles has decreased a lot, and about 90% of the bicycles that are still in normal operation are still in operation.

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

I guess many people are still scared, and if they are caught, they will go to jail.

If you want me to say, this unhealthy trend should be killed. ”

When he mentioned this, Huang Xiaofeng hated it so much. As the largest bike-sharing company in the country, Huimin is also the most damaged and lost in terms of quantity.

"90%, barely within the psychological tolerance!"

Zhang Yida's face was a little pale, and it has been less than three months since the latest batch of Huimin bicycles of 1 million bicycles was put on the market, which has reduced the damage and loss rate a lot.

Last year, the 720,000 bicycles were damaged or lost at more than 20 percent......

Heartache, manufacturing cost plus freight, the cost of a single car is 1,000 yuan, and 170,000 vehicles are 170 million yuan.

If you add the labor cost of dispatchers, the manufacturing, delivery and operating costs of a bicycle are far more than 1,000 yuan.

"By the way, those damaged and lost bicycles, you can send an instruction to go down, let the operation dispatchers in various regions find it, and try to recycle it if it can be recovered!

For each abandoned bicycle, a commission of 30%-50% of the recycling price will be paid to the dispatcher.

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

However, one thing to be careful not to be taken advantage of by some people and destroy the good bicycle and then take it to the company for recycling. ”

Zhang Yida remembered the "bicycle cemetery" in his previous life that made people with dense phobia go crazy when they saw it, and the environmental protection cause became a garbage business, which was indeed quite a slap in the face.

In this life, try to avoid this phenomenon.

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

"Okay, I'd like to suggest a couple of recycling plants. Discarded bicycles are recycled, divided into parts, and reused parts that can be reused.

Not only do you save costs, but you also save resources.

While maintaining our brand image, it can also appropriately reduce some operating costs. ”

Huang Xiaofeng drew inferences from one case and put forward a good idea.

"It's a good idea, let's set up recycling factories according to geography and bicycle density!

You discuss with Fujitec and pull them and some parts suppliers to join the stocks.

They're better at that. We mainly focus on bike-sharing operations. ”

Zhang Yida thought about it for a while and decided to pull people in. As an enterprise, Zhang Yida advocates the strengths of the crowd and makes up for their own shortcomings.

"By the way, the backstage of Huimin Bicycle can see which bikes have not been used for a long time.

This part of the bicycle should be organized to be overhauled.

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

This is also a step to improve our brand image.

Think about it, if a user is in a hurry to ride a bicycle, look for a circle, and find that the bicycles are all broken, then Huimin bicycles can ride normally.

In the long run, users vote with their feet and know which bike to become loyal users.

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

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

The bike-sharing war has kicked off, and Zhang Yida is also ready for a protracted war.

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 be able to get strong reinforcements.

"Okay, let's arrange some training for offline dispatchers in more than 100 cities.

Let every dispatcher learn some skills of simple bicycle maintenance.

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

If the bicycles are seriously damaged, they will be transported back to the operation centers in various places for major repairs. ”

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

"Huimin still has enough money in his account, right?"

Bike sharing is a bottomless pit, and the more bikes you put into the bike, the greater the loss.

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

"The last round of financing of 300 million US dollars, equivalent to 1.845 billion yuan, spent 1 billion yuan on car manufacturing, 150 million yuan on the purchase of dispatching transportation vehicles, 60 million yuan for the opening of 70 new operation sub-centers, 146 million yuan for personnel salaries, and more than 45 million yuan for R&D investment......

Counting the revenue during this period, the bicycle riding income was 156 million, the advertising revenue was 82 million, and there was a total of 682 million yuan. ”

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

"The fixed expenses every month are: salary of about 50 million, advertising expenses of 10 million, and research and development expenses of 15 million...... Not counting the depreciation of bicycles, the miscellaneous items add up to nearly 80 million.

In terms of income, the monthly riding income is 50 million, and the advertising income is 27 million, which adds up to nearly 80 million.

If you don't count the depreciation of the bicycle, isn't it almost the revenue balanced?"

Zhang Yida simply calculated the income and expenditure, and asked Huang Xiaofeng.

"So to speak. Huang Xiaofeng nodded first, then sighed and said:

"But with the start of shared bicycles, it is estimated that the riding income will fall sharply.

Fortunately, in the past few months, we have sold more than 2 million cycling cards, and we have locked in a lot of revenue in advance.

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

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

If we carry out a subsidy war and engage in free riding, I estimate that our monthly revenue will drop by 50 million......

The cooperation with Ruimin Wealth Management is still very pleasant, and we have deposited deposits of more than 12 million users in Ruimin Wealth Management, with a scale of about 3.8 billion.

In addition, more than 7 billion funds were channeled to them through advertising this quarter.

In the future, I expect this area of income to continue to rise. ”

"We also have a bet with a revenue of 1.44 billion yuan with a B round of venture capital institutions, and at this pace, I am afraid it will not be easy to complete.

I will negotiate with Ruimin Financial Management to let them transfer another part of the profits. ”

Zhang Yida is not worried about the shortage of funds for Huimin Bicycle now, and there are more than 600 million yuan in the account, and at this pace, it can definitely support another 12 months of losses.

This quarter's revenue of less than 240 million made him a little panicked, and he would lose if he couldn't make a bet with venture capital......

I haven't lost a bet with a venture capitalist, and I can't be broken, so I have to find a way to get out quickly.

"By the way, how is the communication with Grab, and when will the first batch of bicycles go to sea?"

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

"The first batch of 1,000 bikes will appear on the streets of Singapore next week.

The name is also named, and Yimin translates into English as "benefit the people", so the bicycles are named "BTP.bike".

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

The proportion of subsequent shares will be renegotiated according to the investment of their respective resources. ”

Huang Xiaofeng reported with a smile that he, the CEO, also felt very proud and had a sense of accomplishment when he went abroad as a bicycle.

"Okay, put this in place. Singapore is the first stop at sea and we have to do something. ”

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