I can become stronger by paying salaries. I have one billion employees!

Chapter 195 Taking Down Kuaidi, Getting Drawn into the Era of 1 Yuan Delivery! (Seeking Monthly Tickets)

On January 9th, the winter vacation began, and the Xuyuan Campus was deserted.

Chen Yansen, wearing a black turtleneck sweater and a light gray suit jacket draped over his shoulders, left room 0418 and headed downstairs.

In the depths of winter, puddles on the ground freeze into ice, and the withered grass is covered with a fine layer of frost.

Click!
Chen Yansen opened the car door, got into the driver's seat of the Bentley, and drove towards the science park.

Along the way, there were few pedestrians and vehicles, only company shuttle buses constantly shuttling between the east gate of the virtual college and the science park.

Ten minutes later, Chen Yansen parked his car on the first floor and went straight into Building 8.

"Morning, boss!" Gao Weilin was sitting in the lounge area, drinking coffee. When he saw Chen Yansen come in, he quickly stood up to greet him.

"Old Gao, how many times have I told you? This is the mainland, we can't use the Hong Kong way of doing things."

Chen Yansen smiled and walked over to tease him.

So why do you still insist on calling me Lao Gao?

Everyone calls me Dylan!
Gao Weilin chuckled awkwardly, but dared not refute it; there was nothing he could do, Chen Yansen had given him too much.

With his December salary and quarterly bonus, he received a total of over 12 yuan.

Working under a generous boss like Chen Yansen, Lao Gao never complained about working overtime.

Besides, isn't there overtime pay?

"How is the development of Kuaidi Dache going?" Chen Yansen pulled up a chair, sat down, and asked.

"The testing phase is expected to begin in March. Cheng Weixing doesn't place too much importance on equity. After discussions, Senlian Capital invested 2100 million yuan, holding 65% of the shares, while Cheng Weixing invested 900 million yuan, holding 35% of the shares..."

Gao Weilin took out an equity agreement from the file bag next to him and handed it to Chen Yansen.

"65%?"

Chen Yansen frowned slightly; he hadn't expected things to turn out this way.

"That's right. Senlian's capital shares account for the majority, but considering Cheng Weixing's human resources shares, we gave up another 5% to the other party."

Gao Weilin thought Chen Yansen was dissatisfied, so he quickly explained.

From his perspective, Cheng Weixing was just a small project manager; after Fancheng Technology was established, only one game had become profitable.

Furthermore, due to the dispersed shareholding structure of Fancheng Technology, Cheng Weixing did not earn much money.

To put it bluntly, Senlian Capital's willingness to cooperate with Cheng Weixing on the Kuaidi Dache project was a tremendous opportunity for him.

This is similar to Ma Wenteng approaching Guangdong Telecom in 2000, wanting to sell QQ for 100 million yuan.

When a product is first launched, who can predict its future prospects?

Chen Yansen smiled and shook his head, thinking to himself, "No wonder I didn't know Cheng Weixing's name. Given his understanding of equity distribution, it's quite normal for him to be kicked out of management."

"Boss, you're not satisfied? How about I talk to Cheng Weixing again and raise it from 65% to 70%? Anyway, this is just a draft contract, it doesn't really count."

Seeing this, Gao Weilin assumed that Chen Yansen was not satisfied with the equity distribution ratio, and immediately added.

"So be it."

Chen Yansen said calmly.

With Cheng Weixing's limited funds, he couldn't withstand two rounds of financing, and his equity stake would be diluted to below 20%.

There's no need to rush things or push too hard; doing so could easily backfire.

In fact, there are quite a few entrepreneurs like Cheng Weixing in the industry.

Take Liu Qiangdong for example. When Xu Xin of Capital Today asked him how much Liu Qiangdong was worth, she was implying that she wanted to test Liu Qiangdong's bottom line for valuation.

As a result, Handsome Dong turned around and asked the finance department to start calculating the company's total assets, and even eliminated the negative assets. In the end, he reported a total balance and fixed assets.

The concepts of premium and valuation were completely absent from my mind.

"Boss, I think Cheng Weixing's management skills are fine, but he lacks financial knowledge. We need to find him a reliable manager."

Gao Weilin responded with a sound of agreement, and then continued.

After all, he gave Cheng Weixing 5% of the workforce shares. If Cheng Weixing's business development ability falls short of the boss's expectations, wouldn't that mean his judgment was flawed?

Do you have anyone you recommend?

Chen Yansen chuckled, seeing right through Gao Weilin's little scheme.

“I have a classmate who works as a finance manager in a subsidiary of Cheung Kong Holdings. He graduated from Hong Kong Polytechnic University and holds both Certified Public Accountant and Chartered Certified Accountant certifications.”

Gao Weilin chuckled dryly and began to explain earnestly.

“Since it was recommended by General Manager Gao, then I’ll meet him,” Chen Yansen nodded slightly.

Those who can make a living under Li Ka-shing must be quite capable.

"Thank you, boss," Gao Weilin said gratefully after hearing this.

"At 2 PM, come with me to Luzhou. I've already reached an agreement with Meng Yuanzhi regarding the equity swap for Di Dongfang."

Chen Yansen slowly stood up and casually gave some instructions.

"Understood, I'll go back right away and draw people from the finance and legal departments."

Gao Weilin wiped the smile off his face, looking ready for anything.

Dealing with the central government and partnering with local venture capital firms in Luzhou forced him to be extra cautious.

"Take Mengjie with you." After saying this, Chen Yansen casually walked towards the elevator.

"Okay, boss."

Gao Weilin shouted.

Song Yuncheng works at Pinbei, and Meng Jie works at Orange Technology. The key point is that both of these girls are quite capable.

Gao Weilin had to admire Chen Yansen's methods, but similar situations were not uncommon in Hong Kong.

Without giving it much thought, he returned to the finance department and immediately assembled a negotiation team to go to Luzhou. Chen Yansen went into his office, logged into Pinbei's data backend, and checked the new customer conversion rates of the newly launched 'Cash Roulette' and 'Money Printing Machine'.

Surprisingly, the money printing machine was 10 percentage points more effective at attracting new customers than the cash spinning wheel. After a 20% diversion test, the cash spinning wheel now accounts for 40% of new customer impressions, while the money printing machine accounts for 60%.

It brings more than 100 million new customers to the platform every day. With the traffic from QQ and WeChat, as well as external advertising, the daily increase in new customers remains at 300 to 350 million.

The proportion of new customers brought by primary entry points on QQ and WeChat is decreasing.

It wasn't that Ma Wenteng was secretly pulling strings behind the scenes to limit Pinduoduo's traffic; rather, the number of internet and e-commerce users in 2012 already had a limit.

Pinbei currently has a total of 1.9 million registered users, 3400 million daily active users, 1000 million orders per day, and sales exceeding 7 million yuan.

Excluding digital home appliance orders, the average order value is only slightly over 30 yuan, which shows that low-priced products still dominate Pinbei's market.

Pinduoduo's phenomenal sales volume has had the biggest impact on the express delivery industry.

Although only 60-70% of Pinduoduo's merchants use Yunsu Express, Yunsu's daily parcel collection volume still exceeds 7 million.

The daily express delivery volume in China is approximately 2200 million pieces.

In other words, Cloudspeed's market share has reached 31.8%.

Chen Yansen knew perfectly well that this market share was gained by exchanging a minimum order price of 1.5 yuan.

Yunsu Express lost 100 million yuan a month, but the results were remarkable. Now, at least half of the merchants on Taobao C-store, Taobao Mall, and JD.com POP Mall have switched their courier service to Yunsu.

Although the lowest price from STO Express, YTO Express, ZTO Express, and Yunda Express is also 1.5 yuan, their poor delivery time and lack of door-to-door delivery service easily lead to negative reviews from users.

Yunsu Express is different; its prices are on par with the major express delivery companies, while its service is on par with SF Express.

Although Chen Dejun and others also require the couriers of the franchise outlets to deliver goods to the door, many of the lower-level couriers earn only half the income of Yunsu employees.

You do as much work as you're paid for.

The headquarters has given instructions, and the lower levels have countermeasures.

If there are too many complaints, the deliveryman will immediately take off his clothes and leave.

As a result, franchise owners are hesitant to force deliverymen to deliver goods to their door.

In just two weeks, the Tongda Group lost one-third of its market share.

at the same time.

At the headquarters of Shentong Express in Shanghai, Chen Dejun and Yu Weijiao of Yuantong Express were sitting in their office drinking tea.

"Zheng Shengyu of the Postal Association doesn't care about anything and lets Yunsu Express run rampant. If you ask me, we should just lower the price to 0.5 yuan per order. If Liao Wei doesn't want us to live, we shouldn't expect him to have an easy time either."

Yu Weijiao picked up his teacup, took a sip, then slammed it down on the tea tray, his eyes blazing with anger, and made a vicious suggestion.

"0.5 yuan is too much. We could consider lowering it to 1 yuan."

Chen Dejun was also anxious, but he still put on a calm and composed demeanor in front of Yu Weijiao.

"No, Mr. Chen, are you serious?"

Yu Weijiao was taken aback, not expecting that the other party actually intended to further lower the price.

He was just saying 0.5 yuan in anger.

"Zheng Shengyu wants to watch the tigers fight from the sidelines? It's not that easy. If he won't get involved, then we'll force him to get involved."

Chen Dejun snorted coldly and said meaningfully.

Yu Weijiao frowned. He couldn't figure it out for a moment. He just felt that a price of 1 yuan couldn't even pay the courier's salary. The franchise store owners must be cursing.

That afternoon.

The headquarters of Shentong and Yuantong announced to franchisees nationwide that the price for each order of less than 1 kilogram will be reduced from 1.5 yuan to 1 yuan.

"How much? One dollar? How the hell are we supposed to do this?"

The owner of the terminal station was unhappy. The delivery fee for these small e-commerce items, which had been reduced to 1.5 yuan, was changed to 0.8 yuan. He paid his couriers 0.6 yuan per order.

The cost of making a phone call is 0.1 yuan. At that price, let alone door-to-door delivery, dropping the customer off at the entrance of the community would be considered a five-star service.

Now that the headquarters has reduced the delivery fee to 0.6 yuan per order, the boss also needs to make a profit, so naturally he can only give the courier a commission of 0.4-0.5 yuan per order.

After a day of running around, not counting pickups, you can only earn 50-60 yuan from delivery.

With so little money, you might as well beg for food.

The market share has been preserved, but the quality of service has shrunk significantly, and the situation of lost or damaged packages is becoming increasingly serious.

As Chen Yansen was on his way to Luzhou.

Liao Wei, who had just been discharged from the hospital, called and said, "Boss, Shentong and Yuantong have lowered their prices to one yuan per order. Should we follow suit?"

"What about Yunda and Zhongtong?" Chen Yansen asked.

"Still one yuan and fifty cents," Liao Wei replied.

"We will not lower the price for now. As long as the decline in business volume does not exceed 10%, we will maintain the price of 1.5 yuan."

Chen Yansen gave the instructions.

1.5 yuan is almost the cost price. If it is reduced to 1 yuan, it will not only fail to cover the equipment and transportation costs, but also fail to guarantee the income stability of the deliverymen.

The essence of express delivery is to quickly and accurately deliver goods from the sender to the recipient, not to engage in extreme price wars.

If even the service cannot be guaranteed, merchants and customers will not dare to use it, no matter how cheap the price is.

"Okay, boss, I understand. I will report to you as soon as there are any new developments."

Liao Wei nodded in agreement.

Chen Yansen smiled faintly, not taking the price adjustment by Tongda Group to heart, and then hung up the phone.

Express delivery isn't his main business, but he can still withstand a monthly loss of 1 million yuan.

It's uncertain whether STO Express, YTO Express, ZTO Express, and Yunda Express can withstand the pressure.

(End of this chapter)