Huayu: We're asking you to act, and you're playing a superhuman?

Chapter 101 The Ride-Hailing Subsidy War Is About to Begin

Beijing, Hailong Building.

Looking at the various data of the ride-hailing market in October, Cheng Wei's face was as bitter as the cup of coffee on the table.

The report shows that Didi Chuxing's market share increased by 5 percentage points in October, and its current market share has reached 40%.

In contrast, Didi Chuxing also increased its market share by 5%, reaching 30%.

The two companies together account for 70% of the market share, and there is already a trend towards a duopoly.

This should have been a good thing; Cheng Wei could have used this report card to report to the board of directors and further increase Didi's valuation.

However, another figure on the report made him anything but happy.

Before October, the ride-hailing market was dominated by two companies, Kuaidi and Didi, while there were still more than 20 other small regional ride-hailing companies.

However, fewer than 15 are currently on record.

In the past month, nearly 10 regional ride-hailing companies have gone out of business, most of them concentrated south of the Yangtze River, with only two going out of business in the north.

This doesn't mean the market in the north is better, but rather that Didi Chuxing's marketing strategy worked!

Cheng Wei was initially puzzled as to why Wang Weili would focus his marketing efforts in the fourth quarter on the southern market, which he had already conquered.

"So he wanted to clear away obstacles before competing with Didi—"

Cheng Wei frowned, feeling that if he didn't do something, Didi would eventually be swept into the dustbin of history like those regional ride-hailing companies that went bankrupt.

He took a deep breath, grabbed the coffee on the table and drank it all in one gulp, then carefully dialed a phone number.

"Martin, this is Cheng Wei."

"Is there something you need?"

"There's something I'd like to discuss with you in Shenzhen. I'm wondering if your schedule is available?"

"Can't we say that at the board meeting?"

Cheng Wei sensed the other party's displeasure, but now he had no time to hesitate.

"This matter concerns Didi's future, it's extremely important."

"OK—can you get here at 4 PM?"

"no problem!"

"I can give you 30 minutes."

Cheng Wei thanked him repeatedly, hung up the phone, and immediately booked a flight to Shenzhen.

Upon exiting Shenzhen Airport, he immediately took out his phone to call a taxi to the Tencent Building.

Upon inspection, it turned out that the nearest Didi driver would take 20 minutes to arrive, and the other passengers around them had already used Kuaidi Dache to leave.

"When taking a taxi, safety comes first. Using Didi gives your family peace of mind."

Listening to the endless loop of "Fast & Failed Safety Guarantee," Cheng Wei's face turned pale and then red, and he finally made a difficult decision.

"Passengers have been confirmed to board. Didi Safety Assistant will activate real-time monitoring service for you. Please fasten your seatbelts. We wish you a safe journey."

Cheng Wei sat in the back row, unmoved by the intelligent voice broadcast from Kuaidi.

A few seconds later, the driver turned around and reminded him, "Boss, could you please fasten your seatbelt?"

"I'm sitting in the back!"

"Back row passengers need to wear seatbelts too."

"I----"

Cheng Wei felt like the whole world was targeting him today, but in order to save time, he could only obediently fasten his seatbelt.

After finally arriving at Tencent's headquarters, Cheng Wei waited for over twenty minutes before finally meeting Liu Chiping, the Tencent president he had spoken to on the phone that morning, at 4 p.m.

"I'm sorry to have kept you waiting."

Liu Chiping came to the office door to greet Cheng Wei.

Beneath his increasingly thinning head was a very approachable smiling face.

However, Liu Chiping's ability to serve as the second-in-command at a company like Tencent and remain stable for over a decade suggests that his success is not solely due to his affability.

Cheng Wei was flattered: "No, it was a last-minute arrangement. I'm very grateful that Martin was able to take the time out of his busy schedule."

"Hehe, let's sit down and talk."

Liu Chiping led Cheng Wei to the reception area in the office.

After Cheng Wei sat down, he began to carefully consider the wording he would use later.

Liu Chiping also took this opportunity to glance at him.

This glance was swift and sharp; though it was quickly withdrawn, it left one with a clear understanding.

Liu Chiping smiled gently and said, "Judging from the urgency you described on the phone, I won't serve coffee. Let's get straight to the point."

"good!"

Cheng Wei nodded and began by apologizing, "I shouldn't have contacted you directly, bypassing the board of directors, but the situation is indeed urgent, and I have no choice but to act expediently."

"I understand, I know you're not the type to report to your superiors without permission."

Liu Chiping's words were both an expression of understanding and a form of pressure.

Cheng Wei, with his experience working in a large company, naturally understood what was going on, but his apology was just the opening statement of this negotiation.

"Martin, before you give me your report, let me show you some data first."

"What kind of data?"

"Ride-hailing market model in October."

OK.

""

Liu Chiping's smile faded slightly, and his expression became serious and earnest.

After he finished reading the data that Cheng Wei had compiled, he only asked one question.

Who was in charge of Didi's marketing plan this time?

"Wang Weili, angel investor, board member, chief strategy officer of Didi, and also a celebrity —"

Liu Chiping's self-cultivation had reached the point where he could remain unmoved even when a deer appeared on his left.

However, when he heard Cheng Wei describe Wang Weili's multiple identities, he couldn't help but pause for a moment.

"Excuse me, did you just say he's a celebrity?"

"Yes! It's because he's a celebrity that we've always been at a disadvantage in the competition with Didi."

Cheng Wei readily admitted that Didi was not as good as Kuaidi.

The market share difference is 10 percentage points; there's no denying it now.

Liu Chiping's interest was piqued: "You mean, this Wang Weili is using his celebrity status to promote Kuaidi?"

"Yes! Even the safety statement marketing strategy of Kuaidi in the fourth quarter was planned by him."

Cheng Wei had done his homework before coming.

Putting aside their competitive relationship, he still greatly admired Wang Weili.

A flicker of curiosity and longing flashed in Liu Chiping's eyes as he continued, "So, what did you come here to express today?"

"Martin, please allow me to express it this way—"

Cheng Wei sat up straight, his expression unusually serious: "If we allow Kuaidi to continue its development without taking any countermeasures, Tencent will lose this ride-hailing competition with Ali."

"Tell me your thoughts."

Liu Chiping remained unmoved, not swayed much by Cheng Wei's words, but simply wanted to see what his cards were up to first.

Cheng Wei looked troubled: "I hope to complete the Series C funding round as soon as possible and use all the money raised for ride-hailing subsidies, to seize the market in the most direct way."

"—That's it?"

Liu Chiping's curious yet disappointed expression seemed to say: Is this really worth the trip?

Cheng Wei curled his lip in frustration: "In terms of marketing alone, we are indeed not as good as Kuaidi. Burning money to grab users is the most unsolvable open strategy. It can quickly close the gap or even overtake us."

"Mr. Cheng, you may not yet understand our expectations of you."

Liu Chiping pursed his lips, staring intently at Cheng Wei.

At this moment, the friendly smile on his face was gone; all that remained was his rational and decisive execution.

Liu Chiping said, "Our strategic investment in Didi and the provision of WeChat's traffic entry point are to help you grow faster, not to turn you into a child who seeks help at the slightest setback."

That's a very strong statement.

Cheng Wei's face was grim, yet he couldn't refute it: "According to the original plan, the Series C financing was scheduled for January. I just want to bring it forward a little—"

"Then you need to come up with a reason that can convince me."

"Defeat Kuaidi and become the number one ride-hailing service?"

"This is a promise, not a reason."

Liu Chiping adjusted his posture and blinked to hide his helplessness.

"Let me put it this way. If you think the strategy of burning money on subsidies is effective, why don't you do it yourself first? You should still have some funds left from the Series B funding. Instead of giving me these vague theories, why not provide accurate and specific data?"

"But we don't have much money left. If we don't act quickly enough and only provide small subsidies in the early stages, Didi will find out about our subsidy strategy very soon."

Cheng Wei said anxiously that he proposed this plan to catch Kuai Di off guard.

Liu Chiping disagreed: "Didn't you say that burning money to grab users is an open conspiracy? If that's the case, why worry about them finding out?"

""

"I just want to allow enough time to close the gap —"

Cheng Wei's explanation gradually fell silent under Liu Chiping's gaze.

"This is the third time you've told me that there's a huge gap between you and Didi!"

Liu Chiping's expression completely lost its gentleness, and his eyes became crisp and sharp.

"If you really can only close the gap by relying on penguins, then I need to start considering whether you have the basic qualities that an entrepreneur should have."

"We don't only have Didi as an option. If there is no longer any controversy in the market competition, we can also participate in Kuaidi's Series C funding round."

"But before that, I still hope you won't let us down and try to do something."

Cheng Wei left the Penguin Building in a daze.

He knew that these investors wouldn't act without seeing the benefits, but he still hoped he could persuade them, since Didi was now the second largest player in the ride-hailing market.

Unexpectedly, Liu Chiping didn't care about any of this at all.

When calling a car, Cheng Wei used Didi Chuxing again.

Sitting in the back seat and fastening his seatbelt, he suddenly thought of his last meeting with Yang Mi.

But Yang Mi's face was already a bit blurry; what Cheng Wei remembered most was the conversation between the two of them about Wang Weili.

Last December, Kuaidi used a cash-burning strategy, leveraging Yang Mi's fan base for promotion, to quickly capture the Hangzhou market, winning over Ali (Ali's company) and successfully securing Series A funding.

In other words, they were burning through their own money before securing Series A funding!

Like Tencent, Ali decided to invest in Kuaidi because it saw certainty in the company's prospects.

Cheng Wei's eyes sharpened, and he began to quickly calculate in his mind.

Didi currently has several million RMB in its accounts, which should be enough to last until March next year. If this money is used for small subsidies, it could potentially last only a month.

It's all or nothing!

A BYD car with its yellow low-beam headlights flashing was parked at the entrance of Shenzhen Airport, with the rear doors open.

Cheng Wei clenched his fists, leaped out, and prepared to rush back to the company to adjust strategies and make a big splash!

"Kuaidi Chuxing reminds you that you have successfully arrived at your destination. Please take your belongings with you when you get off the vehicle."

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