I'm in the county town, and you say I'm a big shot?

Chapter 556 Dianping won't directly enter the food delivery industry, but it will be a disruptor.

Everyone's eyes were on him.

“美团发展的是很快，但我们饿了么也不差！已经在全国120座大中城市开展业务，还有在江浙沪一带将近180个县也有新开网点！同时全国将近500家大中型酒店开展了预定服务！我们公司的估值已经高达200亿人民币！9月份一个月的订单量达到4500万！怎么看，优势就在我们这一方！”

“Kang Jia is right,” Deng Ye said, standing up. “I am confident that in the remaining 60 days this year, we can expand Ele.me’s business to 20 prefecture-level cities and 200 county-level cities! Of course, the premise is that we have enough funds and manpower.”

"In terms of funding, of the 2 billion RMB raised last April, we still have about 570 million RMB left in the books, which can last until the first half of next year. After that, we will need to raise more funds. I was originally planning to report this to the board of directors, and today is the perfect time to do so," Wang Chenyang said.

Zhang Xuhao then said, "I've estimated this before. At the current rate of expansion, we'll need at least another 25 billion yuan in financing. In another two to three years, Ele.me will be able to cover all prefecture-level cities and half of the counties nationwide. We'll gain an absolute advantage in the food delivery market. The next step is to refine our operations and strive for profitability to prepare for an IPO."

"But now that Meituan has suddenly entered the fray, 25 billion might be a bit too little, and the pace of expansion needs to be accelerated."

"Wang Yuan, what about you?" Fang Qingye looked at the silent Wang Yuan: "You're the CTO, in charge of the technology side. What are your thoughts?"

"Our NAPOS system upgrade requires optimizing the algorithm to improve riders' delivery efficiency more effectively and accurately, while also adding new modules. Actually, we need two things: funding and talent," Wang Yuan said with a smile.

"Everyone's thinking is actually aligned," Fang Qingye concluded. "First, we must face the challenges head-on. Second, we must immediately launch the fourth round of financing and commission KPMG to conduct an asset valuation for the company. Third, we must take immediate action. I remind everyone to continue increasing our market share and strive to cover more cities! And we must speed things up! Deng Ye, this task mainly depends on you."

"Don't worry, Chairman Fang," Deng Ye said confidently.

"Each person should conduct research on their respective areas of responsibility and related departments, and come up with a new plan for the next two years. Then we'll hold another meeting to discuss it. How about we give you a week?"

A week is a bit tight.

However, everyone knew that Fang Qingye was decisive and efficient, so they didn't say anything more.

The meeting was brief, and everyone went about their own business afterward.

Fang Qingye didn't rush to leave Ele.me. Instead, she summoned a few people to her office and talked about her views and thoughts for a while.

In the end, they found Wang Chenyang.

When Wang Chenyang came in, Fang Qingye went straight to the point: "Chenyang, do you think 30 billion is enough to raise?"

Wang Chenyang pondered for a moment and said, "I had discussed this issue with President Wang before. 30 billion would have been enough, but given the current situation, we need to raise at least 35 to 40 billion this time."

Fang Qingye shook her head: "40 billion is probably not enough. Is your figure based on the current potential losses of Ele.me?"

“Yes, Ele.me is expanding rapidly right now, but we are actually losing money. Due to various subsidies, we lose about 2 yuan for every order delivered, so the more orders we deliver, the more we lose,” Wang Chenyang said.

“Chenyang, have you thought about this? If we compete with Meituan in the future, we will definitely have to fight a price war with even greater subsidies. The loss per order will probably be even greater. You need to take that into account. Moreover, I estimate that it will be a protracted war, and the outcome will not be decided in just a few months.”

Upon hearing Fang Qingye's words, Wang Chenyang's expression changed slightly.

"This is a crucial battle. We must take advantage of our current advantage and completely crush Meituan! Otherwise, it will become increasingly difficult and costly as the battle progresses."

Wang Chenyang nodded silently after hearing this.

"Also, keep a close eye on Dianping (a Chinese review platform). I've reminded Zhang Xuhao and the other three of them about this as well," Fang Qingye added.

"What? Dianping is also entering the food delivery industry?" Wang Chenyang was taken aback.

Dianping is a long-established website primarily providing merchant information in the fields of dining, shopping, leisure and entertainment, and lifestyle services. It's a group-buying website, and last year (2012) it launched its independent group-buying app, "Dianping Group Buying." It recently raised $60 million in funding, valuing the company at over 10 billion yuan. If Dianping were to enter the food delivery market, it would undoubtedly become a formidable competitor.

Fang Qingye smiled and said, "Dianping will not directly enter the food delivery industry, but it will be a disruptor and directly affect the outcome of our competition with Meituan, so we need to pay close attention."

“I understand.” Wang Chenyang nodded.

"Okay, I'll be coming to Shanghai more often during this period. If there are any new developments or problems, please contact me anytime."

"OK!"

After leaving Eleme, Fang Qingye returned to his villa. He wasn't in a hurry to go back to Nanxin; he still had some things to do.

Sitting on the sofa in the living room, Fang Qingye brewed herself a pot of tea and silently drank it while pondering some questions.

The first issue is financing.

30 billion is definitely not enough. If we want to really defeat Meituan, one round of financing is not enough. This is a protracted battle that requires more funds.

Alibaba has made a high-profile investment in Meituan.

Although the two companies may fall out in the future, they are still in a honeymoon period now. If Ele.me and Meituan start a war, will Alibaba provide Meituan with more ammunition?

The current clash between Ele.me and Meituan has deviated from its historical trajectory.

The emergence of Topfox Technology has enabled Ele.me to grow faster and stronger than ever before. However, the delicate relationship between Topfox Technology and Alibaba has introduced uncertainty into what seemed like a tilt in Ele.me's favor.

Rumors have circulated in investment circles that Topway Technology and Alibaba have a grudge, though executives from both companies have never publicly stated this.

At least Fang Qingye never thought so.

funding issues
Let's raise 30 billion first, what about after that?
It's impossible for Tuofang Technology to invest all of its funds in Ele.me.

For Tuofang Technology, Ele.me is important, but not the most important!
Fang Qingye had to think about this problem.

Bai Ou finished get off work on time in the evening and, while eating a plate of noodles made by Fang Qingye, asked about the board meeting held at Ele.me that day.

Fang Qingye naturally told her everything.

“Ye Zi, I’ve suddenly realized something,” Bai Ou said.

"What's the problem?" Fang Qingye looked up at her.

"Since your first investment in Dajiang, Ele.me, ByteDance, and Jinghai Bank have all gone through one or more rounds of financing, and I've never seen you look so serious before,"

"Really? Am I that serious?" Fang Qingye exaggeratedly opened the mirror function on her phone and looked at herself: "My complexion is perfectly normal."

“No, I can sense it,” Bai Ou said. “Ye Zi, we’ve known each other for so many years and been married for over a year, and I’ve never seen you feel like this before.”

"Actually, it's still about funding." Fang Qingye expressed his concern: "Tuofang Technology is neither Tencent nor Alibaba; we don't have that kind of strong financial resources."

(End of this chapter)