O2O model fast taxi company: how to reverse services?

“entrepreneur” in the near future to visit 58 city chief strategy officer, xiao-hua Chen found 58 city is undergoing a revolution – all business mobile, move at the same time launch its own APP — using a mobile APP to connect server and consumers. Quickly, he thought, led by a taxi gave a gap applications for venture capital industry to see the connect and service the great imagination.

it is.

star enterprise founder entrepreneurs dark horse camp Hao Hongfeng recently in pushing a App_ “to” wine, it is the basic logic of, through an App and the need for drinking his closest premises connection, to provide door-to-door service to send wine. Meituan, ali, hungry? In recent half a year for food market is through an application service the people need to order a meal with restaurant together.

a taxi headed by fast application why has such a powerful demonstration effect?

1, it cut into the market enough “tip”, aimed at a niche, develop a useful to connect the corresponding server and consumer App can dry. Fast cutting is a taxi market at the beginning, or even just a taxi in the city of hangzhou, a market, don’t seem to market (billions) in this big quickly. What is a platform, a thing perfectly, tong after skyshatter become platform. After ramming a taxi market, fast now also face a business car rental market. Wine to fast, hungry, is such a path.

2, App, and cell phone bound, which is basic to binding, with position again, to avoid call car rental company, phone and other relatively inefficient and bureaucratic institution, based on the principles of nearby and convenient for consumers and service free, efficient combination. Actually Uber model popular reason is it is through the combination, greatly improve the efficiency of the vehicle operation. Whether electric business, group, or video, each wave entrepreneurship can surge up, all because of the core reason behind new model greatly improved the social operation efficiency in a particular field. Fast taxi applications such as terrorist is that it has the potential to deconstruct off the original taxis are “hidden rules”, improve bike daily capacity and decrease the rate of empty, natural to gain market recognition.

3, fast taxi software in a short span of two years, cost one billion yuan, on metro transit subsidies, focus media advertising, war, education market rapidly, cultivate the habit of a taxi the user use the software. This also tell other vertical industry, originally looked at is unlikely to market, are also likely to start quickly, and bring unimaginable dividends (ali, tencent for O2O market, compete to grab shots).

4, “entrepreneurs” recently in pushing a concept “vertical” severe (in shenzhen on August 19 and 20, and a depth of training), the core meaning, in the era of mobile Internet, Internet thinking is not enough light, but also has made a strong IT system to support the background, has a strong user operation ability, so can with vertical depth of user interaction, to better business, and build their own barriers to competition. Actually fast taxi software such as the beginning of whose APP development is not good, but who spell offline operation ability strong – who can more quickly to the taxi driver to install the application, and ensure the activity. Fast core team has fast away industry background and ability, let them with rivals to distance from the start.

5, the mobile Internet era has an interesting features, that is a lot of companies can make money from the start. Application such as quick, take a taxi near natural with “money”, taking a taxi is a large part of the business population, with mature, such as hotels, airline to liquidate the business of natural close to, they want to make money, every minute. So many vertical App, especially in the field of its industry and has a mature model of money and be more positive on outlook.

“I put the service mode of the mobile client connect people, defined as the third wave of the mobile Internet. Mobile Internet the first wave is to do the basic hardware (mobile phone) and tools, the second wave of the games, the wave is true. Mobile phone is equivalent to an extension of the people, is a person of another body. When people are after extension, the biggest problem is that people need to connect, this will depend on the services sector.” Xiao-hua Chen so described quickly open the service connection and the people such as great prospects, in his opinion, all of the vertical segmentation services such as moving, generation of driving, household cleaning, tutor and so on all possible a “fast”, the more segments, the service and the higher the degree of standardization (such as taking a taxi, moving), the more chance to copy the “fast” mode.

let’s take a closer look at fast, co-founder of Zhao Dong dry on the black horse camp to share, and see how fast the O2O model company in a short time for 2 years.

here is a taxi fast co-founder and COO Zhao Dong oral finishing:

create long-term market value

in 2005 after graduating from university, I did six years sales in the Johnson & Johnson, start a business in May, 2012. When doing the quick take a taxi, I also engaged in a home appliance business company, as cosmetics agent operation. I turn off the electricity company in 2013, focusing on taking a taxi.

we do what is the purpose of the taxi? According to maslow’s hierarchy of needs, take a taxi there are levels of demand.

for consumers, the most basic need is to get a taxi, which in turn is more convenient to get a taxi, then also want to find a service a better driver.

for drivers, they hope to reduce the rate of empty, the intensity of labor is reasonable, and more secure. In the past, reducing the rate of empty method is electric model. Hangzhou and Shanghai taxi electric is very developed, the hardware is a taxi with a car, the electric recruit pushed to the car after receiving the order. The driver phone down the passengers first, then use his cell phone to call contact with passengers. Now we through mobile applications, let the driver pick up single step more simple, just click button on your phone. In June this year, we made a with millet can be posted on the steering wheel hardware, don’t need to go hand far point button, the small hardware improved the safety of the driver.

the above are just some qualitative, logic thinking, in fact entrepreneurs in the first place to work out a stage to achieve goals. Before I do sales, but in the company’s headquarters to be responsible for the channel, every day is in the plan and target, and consider how to perform.

so I’ll think about it and estimate the market capacity is big enough, the taxi is the real market, how much has the potential. If only, etc. A list to get a ticket business, I might not be willing to do, I want to do a matter of long-term value.

the country two years ago, 1.1 million taxi, about 30 single day per car. Hangzhou has 10000 vehicles, daily turnover is about 900 yuan per vehicle, then hangzhou taxi turnover is 9 million yuan a day. The implied, the national more than 100 taxi, turnover is 900 million yuan for a day, one year is about three hundred billion yuan. Look at the empty rate: in January 2013, data released by the bureau of Shanghai, Shanghai taxi empty rate is 31%, estimated level at least 25% of the whole country. That means three hundred billion market, cab and the overall capacity of the actual consumption by 75%, and 25% did not happen. There are two possible, one is empty, the driver can only be received under a passenger empty; Another kind is to offend.

I set up two basic assumptions, one is the largest fuel assumption, the second is the highest capacity hypothesis. Most fuel-efficient hypothesis refers to assume that 75% of the load factor, we give the driver orders, don’t need to empty can get enough orders, although there is no additional business, but at least can fuel. A car almost empty mileage is 90 km a day, can save a few pieces of gas, this is the minimum that we can do it. So calculate the market capacity is billions of dollars. Maximum capacity hypothesis refers to excavate remaining 25% capacity in whole or in part, created the market value of about tens of billions of dollars.

we do before taking a taxi software, hangzhou taxi drivers went on strike at least once a year. But they were all very quiet in the past two years, no one have gone on strike. This shows the driver’s labor intensity is relatively reasonable, income also increased. Reduce the rate of empty it is what we can do it, but it can reduce how much, is need to consider the optimization.

if empty rate by 5%, taxi market scale will increase 20 billion yuan a year. We extract 20% commission, is 4 billion yuan. As for the commission is how to form, at that time, I have not carefully considered, but the logic in here: if I created the market value, to charge a commission is reasonable.

the above said is the potential market factors, there is another factor from the capital markets: in March 2012, the United States a Taxi similar software, like Uber, Get Taxi and Halo, melting the tens of millions of dollars. Based on these two factors, we decided to do this product with taxi quickly.

some time ago, I give to overthrow the previous market capacity algorithm, because the algorithm only considers the under the control of taxi licences and capacity can satisfy the market. Even now a taxi with software, the success rate is only 60 percentage, with young recruit success rate is almost at the side of the road. So the current market meet the needs of the 60 percentage. On the other hand, some people worry that can’t car, to switch to other means of transport, if you can play anytime and anywhere by car, car market scale will increase further. Vehicle market covers taxis, commercial vehicles, and even battery tricycles and motorbikes, there are some implicit demand. Because the current supply is suppressed, when we have the ability to produce supply, these requirements will be released.

the taxi driver to help us introduce investors

others ask why we develop so fast, I think the most important thing is standing on the tuyere. Our company established in 2012, in January 2013 in Shanghai, on July 30 cities, covering the whole country in December wholly acquired Shanghai taxi software bumblebee. At present, the fast taxi has covered nearly 300 cities of China. We were in Beijing, Shanghai and hangzhou have nearly thousand square meters of office.

fast headquarters in hangzhou, hangzhou and supposedly is not a small city, but from the perspective of entrepreneurial congenital disadvantage is very big still. If the company is also small, I suggest that entrepreneurs have a chance to move, be sure to put the company moved to Beijing. If let me choose again business location, it is Beijing. We did a good job in hangzhou, 100, but the media influence might be only 1; Assume that only 1 in Beijing, May 100 media influence. Because Beijing brought together a large number of investors, the media, the media and large application, these influential people and institutions can help you, is can bring flow and talent.

fast Beijing office to do first thing in the form of pr team. Before August 2013, the company has no professional public relations staff. We also don’t understand this, we feel as if they can also be done, also need not to publicize what. But in fact, the industry competition is fierce, everyone has the support of giant, has the certain strength, if this time is not in the media, disadvantage is obvious. Pr team, we are the disadvantage of the court of public opinion gradually come back. For startups, everyone will also care about how do we get financing. Was originally a few founders themselves to pay a few million, the product in August 2012. I’m very lucky, and in October when we started to have awareness in hangzhou, although there aren’t many drivers. There are a lot of investors to hangzhou to do project, and they take a taxi, some taxi drivers would recommend fast, some investors think the application is good, came to find our company. Many investors are initially taxi driver is introduced, because the most began to use the software drivers are seed users, be willing to help us to promote.

plus alibaba investment company with us just across the street at that time, we also know ali Xie Shihuang, head of the investment, went to see it. Didn’t do when we meet PPT, what all have no, is to rely on the mouth said. We from start-up to now didn’t do a PPT, because the data will talk. When you hire the car on the market, click take a taxi, a taxi fast taxi software companies such as, I think investors may not dare to vote for a long time have no company to do it, would rather vote for a new company. And our team’s overall background is very good, is not particularly summary was developed. I was doing electrical contractor, annual salary of hundreds of thousands, not particularly short of money, also have the option. Zhejiang university of my classmates have been in a foreign company do before WenCheng technology, salary of not a few. CEO Lv Chuanwei came back from the United States, salary is close to two million in the United States. We three people have successful experience, this does not mean that entrepreneurial success, but we are doing well in their peers, pragmatic, low-key, modest as a whole. I think all of these have a certain influence on investors.

ground to push force

a lot of people think fast ground, I think that we do have a lot to do before. Although we are mobile Internet company, but this is before I do all the work offline, FMCG sales.

when I graduated from zhejiang university in Johnson & Johnson, companies don’t care whether you graduated from a famous university, the first one to send a bicycle, drive a tank of sanitary napkin to sell. It was in August 2005, I ride bicycle to go to the countryside to sell goods. At that time I was assigned to the hangzhou binjiang, one of the most remote, or a piece of the countryside. You know I sold the first thing is what? I found a small grocery store, promote j&j’s soap. This soap is very expensive, 4.3 yuan a, and generic brand of soap that is $2. I grind for two hours at a grocery store, and the owner is really guilty, says it’s not easy to see you are a college student, bought two pieces of soap.

so fast later began to push, I don’t think what is not grounded gas problem, because these are for us before done. In 2012, our products will go to the hangzhou foreign affairs service area for promotion. In order to attract the driver, we bought a big trumpet put “the most gorgeous national wind”, the drivers are very like to listen to. This big trumpet is our best publicity tool, the driver just come and consultation, we will send the farmer mountain spring.

I think a product is really need to find those seeds regardless of the interests of users. We have just few people use when launching theory, also have no money. Hangzhou, a famous team captain to call on the whole team to help us, they are very recognized the value of taking a taxi.

at that time, our company is a dozen people, between people to push out. Beijing’s largest taxi driver intersection in Beijing road, delivery time is 4 o ‘clock in the morning to 9 o ‘clock in the morning, so we are in Beijing to promote the work time is 4 PM to 9 PM.