The merger of Didi and Kuaidi: from enemies to lovers behind the scenes!
Release Time:
2015-02-15 19:08
Source:
Huangshan in Wind and Rain
February 14th, Valentine's Day. Didi and Kuaidi announced a strategic merger. Former fierce rivals now announce their strategic merger on this special Valentine's Day, telling everyone that the past is past, and enemies have become close lovers. There are no eternal enemies, only eternal interests. But behind the sweetness lies a real crisis, forcing the two companies to merge.
1. The merger of Didi and Kuaidi creates the world's largest ride-hailing company. From now on, there is no need for deadly competition or huge promotions. This is actually the birth of a monopoly company. What are the consequences of a monopoly? Riders won't benefit, and the service won't be as good. This is almost an inevitable result of monopoly.
2. The driving force of capital. Few startup companies think about strategic mergers or restructuring before turning a profit. This is clearly a marriage arranged by the venture capital institutions behind the scenes. Liu Chuanzhi's daughter, formerly at Goldman Sachs, serves as president, injecting capital color and strength into the company.
3. Most importantly, these two companies would die if they didn't merge. Don't think these two companies are doing well; relying on continuous vicious competition and burning money to increase users has proven unsustainable. After burning billions, they still have to keep burning. The venture capitalists are scared and hesitant, and profitability is still far off. But no one dares to stop burning money. If one stops while the other continues, the one who stops will die first.
4. The merger of Didi and Kuaidi allows them to continue surviving; without merging, they would both die.
Any model that relies on continuously burning large amounts of money is unsustainable. Didi and Kuaidi burn money together and slowly die together; if one stops burning money, that one dies first. This model is like past e-commerce models, burning money to death without any meaningful outcome. In this regard, the most admirable is Lei Jun, who spent the least money to achieve the best results. This is the true internet mindset.
Like the ride-hailing industry, the internet finance sector, especially P2P, is also burning large amounts of money. All platforms are burning money, but models relying on burning money are unsustainable. No matter how big the platform is, relying on continuous money burning is a dead end because it doesn't create stickiness and is unsustainable. Xitouwang's development does not rely on burning money but on continuous, bit-by-bit brand accumulation, always treating customers with strict risk control and high-quality service. Safety and quality service may be long-term, but they are the right path, the great path, and the true internet mindset. Finally, wishing everyone a happy Valentine's Day!
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