Chapter 354: Chapter 285: A Monthly Loss of 1.2 Billion? The Frenzied Final Battle! The Qian Du Era of DiDi
’I get it now, but it’s too late.’
"President Cheng, why don’t we build another ride-hailing platform and start over from scratch?"
Zhang Bo, the CTO of DiDi Dache, said indignantly as he looked at Cheng Wei’s exhausted expression.
"There’s no chance. The domestic venture capital firms willing to invest in the ride-hailing sector are either on Fast Taxi’s side or DiDi Dache’s. This business burns too much money; very few investors dare to pony up the cash."
Cheng Wei replied with a bitter smile, shaking his head.
From May to August, DiDi Dache had burned through 430 million in funds, losing over 100 million a month. The barrier to entry for this industry was just too high.
Zhang Bo froze for a moment, then sighed and stared blankly out the window. Down below, a few cicadas on a loquat tree let out piercing cries that sounded both mournful and bleak.
Cheng Wei stood up, walked out the door, and leaned against the glass wall, staring vacantly at the office before him.
’The company I’ve painstakingly built for over half a year is about to be handed over to someone else in the blink of an eye. It’d be a lie to say it doesn’t hurt.’
Just then, Li Yanhong arrived with his entourage and came face-to-face with Cheng Wei. The two men locked eyes.
From Li Yanhong’s perspective, his actions were perfectly justifiable. Qian Du had invested over 200 million in DiDi Dache; if Cheng Wei wasn’t capable enough, then of course he had to make way.
But in Cheng Wei’s eyes, DiDi Dache was his baby. Li Yanhong and the others were merely investors, yet they were forcing the founder out. Such a move was simply unscrupulous.
However, people like that were a dime a dozen in the investment world. Cheng Wei wasn’t the first founder to be ousted by his investors, nor would he be the last.
"President Li," Cheng Wei said, his smile strained.
"I’m doing this for the project’s stability and long-term development. I hope you can understand," Li Yanhong said dismissively.
’Understand my ass!’
Cheng Wei scoffed, unable to hold back the silent curse.
But he knew Li Yanhong and the others were dead set on replacing him. No matter how hard he fought, the outcome wouldn’t change.
"President Li, this is DiDi Dache’s CTO, Zhang Bo. He has solid technical skills and is familiar with LBS and search algorithms..."
Trying to maintain a final shred of dignity, Cheng Wei pointed to Zhang Bo, hoping his introduction would save the man’s job.
"I’m aware. Zhang Bo used to be a search engineer at Qian Du. It seems President Cheng placed a great deal of trust in you," Li Yanhong said, looking at Zhang Bo with a smile.
’Although Zhang Bo is a former employee, and in a way a "traitor,"’ Li Yanhong thought, ’the fact that he earned Cheng Wei’s respect after leaving is a testament to Qian Du’s system for cultivating talent.’
Zhang Bo gave an awkward laugh, unsure of what to say.
"I have someone else in mind for DiDi Dache’s CTO. If you’re amenable, you can stay on as technical director. Your compensation will remain the same."
Li Yanhong patted Zhang Bo on the shoulder, smiling as he awaited his answer.
’In any case, Zhang Bo is practically one of our own,’ he reasoned. ’No need to replace absolutely everyone.’
Zhang Bo opened his mouth to speak, but Li Yanhong cut him off.
He knew that with Cheng Wei standing right there, Zhang Bo’s reply would likely be disingenuous.
"President Li, right this way!" Cheng Wei took a deep breath, forced a smile, and led Li Yanhong, Li Guangping, Zhang Lei, and the others into his office.
What followed was a very ’pleasant’ discussion.
Cheng Wei resigned as CEO of DiDi Dache to become a "strategic development advisor" for the company.
Li Yanhong had hoped to use the opportunity to buy out Cheng Wei’s shares, but Cheng Wei was no fool. In less than four months since its launch, DiDi Dache’s valuation had skyrocketed from 10 million to 4 billion.
’If I sold my shares now out of spite, I’d be a complete idiot.’
On August 15th, Qian Du’s management team officially took over operations at DiDi Dache.
Founder Cheng Wei was relegated to the sidelines, while the former CTO, Zhang Bo, was demoted to technical director, now working under Li Yanhong.
As Cheng Wei left Digital Valley, Zhang Bo’s words echoed in his mind: "President Cheng, I’m with you, through thick and thin!"
’When self-interest is on the line, what’s friendship worth?’
In that instant, Cheng Wei’s understanding of business matured immensely. The price of this lesson, however, was control over DiDi Dache.
At 2:00 p.m. that day, the details of Fast Taxi’s Series B funding round quietly hit the trending topics list.
The search terms "Fast Taxi 3.5 Billion US Dollars," "Series B Funding 500 Million US Dollars," and "Top Up 399 Get 520" were scattered at ranks six, seventeen, and thirty-six, respectively.
"Top Up 399 Get 520" was a marketing promotion launched by Fast Taxi at midnight on August 15. Users who paid 399 yuan would receive 520 yuan in ride credit, plus five 12-yuan coupons with no minimum spending required.
The offer was cumulative, with no limit on the number of times a user could participate, and it supported refunds at any time.
In every time slot, the top ten users to top up would also receive a free 64GB Orange C2 smartphone.
As soon as the promotion went live, it attracted over 100,000 users.
With a top-up of 399 yuan, users received 580 yuan in total value. That worked out to a discount of roughly 31.2%, saving them 181 yuan.
Although Fast Taxi offered discounts for new users and subsidies for regulars, for high-frequency riders, those small perks were just a drop in the bucket.
Within 24 hours of launching, a total of 461,000 users had participated in the top-up event. The revenue from this promotion alone hit 440 million in a single day, with an average participation rate of 2.6 times per person.
This move from Cheng Weixing accomplished several things. First, it increased user stickiness and locked them into long-term spending.
Second, it rapidly generated cash, alleviating pressure on their cash flow and reducing their reliance on venture capital.
Third, it lowered customer acquisition costs by encouraging users to gift ride credit to friends and family, creating a viral marketing effect.
Sure enough, on the second day, DiDi Dache’s order volume from existing customers in Yanjing, Tang City, Jinmen, An Ci, Changshan, and other areas plummeted by thirty percent. These were the users who had topped up their accounts on Fast Taxi.
Even if user loyalty was practically nonexistent, a top-up campaign was certainly an effective way to lock customers in.
Why do supermarkets, barbershops, KTVs, and restaurants love offering stored-value cards?
For no other reason than they’re just so damn effective!
Wang Jin and Xiang Hailong, who had just taken over DiDi Dache, instinctively chose to copy Fast Taxi’s strategy.
But in Li Yanhong’s eyes, this was too passive. DiDi Dache should be on the offensive, not letting Fast Taxi lead them by the nose.
So, on August 16, DiDi Dache changed its tactics. First, it released the Qian Du Map Mobility Edition, integrating ride-hailing services directly into its map and navigation app.
Next, it adjusted its subsidy strategy, canceling promotions for new customers and treating all users equally: two rides per day with an instant 10-yuan discount.
For most passengers, a normal daily commute consisted of two or three rides at most.
As soon as DiDi Dache’s promotion launched, participation in Fast Taxi’s top-up campaign plummeted.
"Dumbass!" Cheng Weixing cursed, but he had no choice but to adjust his strategy.
He didn’t cancel the new user promotion. Instead, he started sending users two 10-yuan "red packets" each day. After a user completed a ride with Fast Taxi, the bonus would be activated and deposited into their Orange Pay balance.
’Might as well use it to pad the revenue numbers!’
The competition between Fast Taxi and DiDi Dache entered a phase of brutal, close-quarters combat, with each company burning through over 40 million yuan a day.
That was 1.2 billion a month!
Li Yanhong had to bite the bullet and continue the subsidy war while actively searching for new financing opportunities.
Netizens in the Yanjing, Beihai, and Jinmen regions flocked to Weibo, BBS forums, and their social media feeds to post screenshots of their free rides, making users in the south green with envy.
Everyone online was speculating: how long could the subsidy war between Fast Taxi and DiDi possibly last?
「Meanwhile.」
The search war between 360 and Qian Du was escalating dangerously. 360 brazenly scraped data from the Qian Du Network and blocked all of Qian Du’s products.
In retaliation, Qian Du added 360’s search products to its own "virus list," preventing users from even reaching the "360 Search official website" through a Qian Du search.
It was a purely mutually destructive tactic.
And what about the user experience?
What was that?
and Qian Du were treating their users like punching bags, making everyone’s life miserable.
All the while, Lingxi Search, which had been watching the war from the sidelines, saw its market share steadily increase.
At 9:00 a.m. on August 17, the Yanjing Industrial and Commercial Association, jointly with the Industry and Information Technology Association, issued a public warning to both 360 and Qian Du, summoning Zhou Hongyi and Li Yanhong for a meeting.
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