If you are a competitor to the last drop this battle should how to play

"Editor's note" the writer @ Oscar Cheng, Thunder co-founder.

The last couple of years of the car was really competitive, just "take a taxi to the last drop" and changed its name to "drop", which was to take all the rhythm of travel services.

Associated with a topic I think is very interesting: why drop can easily be extended to the entire field of mobile travel, even in car and driver working a few years in the field of competitors is cause, the law and what is the logic behind this? O2O and everyone familiar with the field of Internet competition and the same and different places? And which can draw on the strategy and tactics?

First of all, "high frequency and low frequency" and "just need to not just" is a prerequisite for extension.

The words we have heard too much, but had his reasons. Not only is the O2O, Internet.

Micro letter plus a payment function you are using, pay you to add a chat feature? Anyway, I have not used, this is a typical "high frequency and low frequency". The logic is simple, the app I use on a daily basis, which prompts a sudden I can use the app to buy things I happen to try Tencent hand on more than one user, also manufactured a variety of scenes remind you in the future.

Take a taxi to the last drop extends to the driver is the same, a lot of people used every day took a taxi to the last drop, I suddenly found a "driver" tab, and there is a red envelope, I'll give it a try. But looking back at the driver, the frequency is much lower than a taxi, no one drinks every night.

Advantage is not only the high frequency and low frequency to the last drop, but also was needed not just. The driver the requirements is not enough. At night, but I still want to drive, only one goal: don't feel like drinking. Even if the face had a Cup, I still think I can drive home myself, without a driver, in fact I had a history of drinking a glass of beer without blowing out, they do not imitate. Demand is just enough, it is easy being invaded by rivals, essentially due to the inertia of the user, nothing fit so many APP do? Category one is enough.

Of course, not all of the lateral spread is so easy, or Tencent Internet services do all the mobile features in the industry that he is.

This feature is moving too high a degree of standardization of such products and services. Which is both good and bad. Good thing is easier to use the Internet in the early advantage, as electricity producers is starting from selling books at home and abroad. But the downside is that you do for two years, I done for two months, experience our products are basically the same. Drops of substitute driving, driver experience and e, but the advantage is that I flow better than you, more drivers than you (theoretically can open the car was having the driver during the day), not to mention I'm also willing to spend money on subsidies, how can you say this?!

Another term for a high degree of standardization is "moat too shallow."

Unlike many Internet industry, or have a lot of technical know-how, like search or have a very strong network effects, such as SNS. Your first two years, advantage is quite obvious, I made it myself, experience would catch up with you for a long time.

BAT's core business of search, SNS, e-commerce platform, has a strong moat, in fact also doing Baidu Hi Baidu and Yes, Tencent's Soso and Pat, Ali also did, but we do not speak. In fact, not only mobile travel area, the vast majority of O2O fields have "moat too shallow" issues. Cause you have quite a small pool of business, easy extension by competitors came in, no way, moat too light!

From the user's point of view, the lack of standardization means a high degree of product differentiation, the subsidy becomes hard truth.

Took car for example, bus, car, car, leave the experience much, nothing inside the car clean, drivers better, the door for you to help you with your case, the rear bottles of water. I haven't heard discussed who was Uber good service was good to the last drop, only heard guys discuss which is more cheaper. Even his own publicity is also stressed that subsidies! Kenzo Cases

China car trying to differentiate, but lower. Say that others are "black", which is to tell their stories, he emphasized the advantages of perception is not strong, in fact, user doesn't care about cars is not belonging to the company or the driver was professional, this does not spell.

This leads to the next question. Subsidies where money come from? From the VC, so financing has become the core competitiveness.

Capital area of the Matthew effect would be too obvious. If your VC, you will cast a leader or a follower? Obviously it is the former. Your leader is a maximum rate of return lower, 1-2, but I can make a reputation. Behind your vote, may get a penny back. You say what you choose? Back to the car area, I heard that Uber China recently financed a billion of dollars (people happy), the other car if you do not shift the thinking of I think can get the investment is unlikely.

With all that said, I feel the "moves" of practitioners in the field to despair, it is not completely without opportunities? I think not, but one thing should be clear:

When the Red Sea when there is a clear leader in the market, the battle is not a good option, taking into account the differentiated market segments.

Subsidies are clearly not differentiating method, you can subsidize he can subsidize, and fill more than you, because his ability is stronger than you. You must be subsidies is not a problem, people across the country would also like to thank you. High frequency is the entry that you want, and the Internet, never intended to make money directly on the entry and follow-up can be done in pigs, that everyone is familiar with, but early, put too much money to even occupy the entrance, so play certainly not subsidised.

I just said a few irresponsible idea: now a pain point is the driver of the car that did not know the way, Shenzhen software Park, such a public place had about half a day, you can make an old drivers (brother) 's fleet, the user perception is obvious. Cars do not necessarily have that much, of course, or you can just make a reservation. Main user or business, and less sensitive to price, enter the flight number on the mobile phone, arranged Airport transfer at both ends, and a terminal building, was holding a sign with your name for you, help you with your luggage, double face! Higher-end route. Now the Uber Uber Black, also advanced to the last drop, but it seems just a bit better, no difference.

There is also a market (to hear and some have already done, but I haven't heard of the surrounding people who use), get an enterprise directly to get all employees on a business trip.

Employees must use your services, or reimbursement are in trouble. You get the BAT directly give you tens of thousands of users, you can always give me a discount, companies could also save money. And you can to provide payment, once a month, Bill is clearly written on each trip for each employee how much money from what to what. From the user's perspective, software Park, I said you don't have to look for for a long time, several areas of the business, the driver ran several well-done.

Staged car wars of the past two years and victorious, I can only provide me some experience and understanding, also hopes to have more people involved in the discussions and to share, put it into a classic MBA case! Finally, to recommend a book--the book of the war, business references a number of Clausewitz's theory of war, elaborates market leader, market follower in a defensive battle, differences in offensive warfare, flanking strategies, want to help.

"The author of" Oscar Cheng, Thunder co-founder. Micro letter number: gallant brother (ID:haogetalks), 15 veterans of the Internet, focusing on sharing IT dry.

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