Rebirth begins with e-commerce

"The platform transfers the contradiction to the riders and users. It seems smart, but it is actually the stupidest way."

Li Shan made an impassioned statement at the meeting: "The platform has no ability to alleviate conflicts, or has never thought about easing conflicts, so it transfers conflicts to riders and users, making riders and users hate each other."

"The contradiction has only moved, not disappeared. One day, riders and users will find that they have been fooled by the platform."

"This is the law of conservation of contradiction."

…

Li Shan had always felt that his opponent's model could greatly improve efficiency, and he was worried that after this takeout war turned into a protracted war, Fantuan would slowly lose.

Research these days has found that this model only brings expansion efficiency.

The model of agents at all levels allows their outlets to be quickly spread across the entire network.

Therefore, they have only been established for less than a year, but they have quickly occupied the market, and their share is catching up with rice balls.

You must know that it took several years for rice balls to achieve the same scale.

At the same time, the responsibility system for agents and webmasters has greatly improved their management efficiency.

The small boss of the site can directly manage each delivery person and give full play to their initiative.

You can follow the riders with a whip and beat them to squeeze their time to the limit.

On the contrary, rice ball delivery adopts a direct operation model without agents at all levels, which can easily lead to low-level employees being lazy.

Every system has its advantages and disadvantages.

The opponent's agent system can quickly expand the market, and at the same time, these agents are bound to share the profits.

The more agents there are in the middle, the more points will be deducted at each level.

In order to maintain this chain and make money from the platform to agents at all levels, higher promotion points must be drawn from riders and merchants.

The money is ultimately borne by the user.

A takeaway itself only costs 20 to 30 yuan, and riders will be deducted a few yuan for each order. Agents at all levels charge commissions, platforms charge commissions, and restaurants have to pay for labor, store rent, and ingredients...these costs are ultimately borne by the user.

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With this in mind, the cost of ordering takeout will be much greater than dining in.

There are no agents at all levels for rice ball delivery, and the riders are managed by themselves. In theory, the cost can be reduced to a minimum.

Moreover, these riders themselves come from intra-city delivery, so they can allocate management costs to the intra-city delivery business, further reducing costs.

This is a market worth hundreds of billions. Due to too many levels of agents, rival platforms may only be able to maintain a small profit even if they take a cut of more than 20% and generate revenue of over 100 billion.

As long as Rice Ball lowers the draw point to 15% or even 10%, the opponent will be very uncomfortable.

The distribution of interests in their entire agency chain will inevitably not be realized, which will inevitably lead to intensified conflicts between the agency and the platform, and will eventually fall apart.

As long as Fantuan maintains its current scale, it will wait for the day when its opponents collapse.

In fact, this was also a strategy Luo Xiu had decided on long ago.

Capture the market through first-mover advantage and then reduce profits to the extreme.

Just like Coca-Cola, it does not have high technology.

You can't make soda cheaper than me.

As long as I take 5% of the profit, it will be enough for me to eat and drink.

And if you sell it for the same 3 yuan, you can't afford the production line, agents at all levels, channels, and promotion costs.

In a market with hundreds of billions of dollars in food delivery, as long as rice balls maximize their own profits, cut out middlemen, give more profits to merchants and riders, and keep no more than 5% of profits, others will not be able to compete with you.

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Don’t other beverage companies not want to make Coke? They took one look at the gross profit margin and could only shake their heads and leave.

There is no profit margin for drinks priced at 3 yuan, so they are willing to compete in the market for drinks priced at 4 yuan or 5 yuan.

…

When the takeout war was in full swing, Fantuan suddenly announced that the exclusive contract deduction points would be reduced to 10%.

Li Shan, who had been sunburned and lost a total of thirty pounds, faced the media and said with firm eyes: "A month of running for takeout has allowed me to see another side of the world."

"I saw riders carrying babies on their backs, walking through traffic, and climbing stairs sweating profusely, just to survive."

"I saw restaurant owners getting up at three in the morning to make wontons, all year round."

“I saw lonely elderly people with limited legs and feet who only ate one takeaway meal a day.”

“The reason why we reduce points and deduct points on the platform is to pass on profits to restaurants, riders and users.”

"In the end, starting a company is all about making money. We cannot be noble enough to lose money in business, but I hope that what we earn is just the service fees we provide."

"I think we are a service industry, not a high-profit, winner-takes-all Internet industry."

"I would also like to call on my friends and businessmen to lower the deduction points together and not to take all the blame."

…

Li Shan's original fat image is very much like that of an unscrupulous profiteer, and it is difficult to gain trust no matter what he says.

Therefore, he rarely speaks publicly for fear of backfire.

Luo Xiu is always responsible for the company's image spokesperson.

Luo Xiu has also been shamelessly claiming that he is responsible for the company's appearance.

Now Li Shan has been running takeout for nearly a month. He has become darker and slimmer, and at the same time, his image has become more familiar.

Coupled with the gossip news a while ago, people know that the CEO of Qianyi Platform really went out to do takeout for a month.

Speaking this now as a rider makes people feel the same way.

"As a small restaurant owner, if Fantuan really reduces the deduction point to 10%, I will be the first to sign an exclusive contract."

"I am a crowdsourcing rider, and my salary seems to be very high, but I only earn it by running 12 hours a day, all month long."

“Anyway, I’m used to only downloading apps of the same type, and I’m used to ordering food at Fantuan.”

"I have to say that the rice ball delivery guy makes me feel the most comfortable."

Some people also sang the opposite and said: "You can quite empathize with capitalists? Can you believe what the capitalists say?"

"Anyway, I just listen to his words and watch his actions. In the end, I just want to see if his words and deeds are consistent."

"No matter what he thinks in his heart, wouldn't it be good for a platform to stand up first and lower the deduction points? I hope other platforms will quickly follow suit."

…

Li Shan's remarks caused an uproar in the industry.

The food delivery war has been going on for so long, and everyone has assumed that subsidies can be provided, but deductions cannot be reduced.

No matter how many red envelopes you give out, no matter how much money you lose now, it is only a current loss, and you can slowly earn it back after winning the market.

The deduction points have been reduced, but it will be difficult to increase them.

The practice of making rice balls is simply a waste of money for this industry.

Moreover, other platforms have major capital injections, unlike the equity structure of Fantuan.

When people bring in capital, they want to obtain higher returns and get their capital back quickly.

If you keep your profits so low, even if you eventually win the war, how long will it take to make the money back?

Capital must be efficient. If your return here is too slow, it would be better for people to use the money to invest in other industries.