On August 17, huapiggy launched a subsidy offensive in nine cities including Beijing, Guangzhou, Chengdu, Hangzhou, Nanjing, Hefei, Zhengzhou, Qingdao and Taiyuan.
on the same day, Hua Xiaozhu announced that the first order of the day given to the top 8888 users in each city was reduced by 20 yuan. After the 8888 places were used up, all orders were reduced by 6% and the maximum discount was 10 yuan. Each user’s daily discount was no more than 4 orders. In addition to subsidies, tiktok has laid advertisements on micro-blog, jogsaw and other traffic platforms, and has invited cross talk actor Guo Qilin as spokesperson.
both the subsidy range and the promotion efforts have made the online car Hailing market, which has been quiet for a long time, set off a bloody rain again. A driver of Huazhu in Beijing told the economic observer that in addition to the passengers, Hua Xiaozhu also gave the driver corresponding rewards. In his opinion, “it has not been in the online car Hailing market for many years that he has experienced such a large amount of” burning money. “.
new platforms spend money to grab the market share. This is not a new trick in the online car Hailing industry. It has been done by several big companies in the early years when they seized the market. However, it is worth noting that huaxiaozhu is not a brand new platform in the strict sense, but an online car Hailing brand incubated in Didi. A person familiar with the matter told the economic observer that Hua Xiaozhu was a company set up by the person in charge of didi East District, and only recently has it surfaced.
for the purpose of the birth of the little pig, a senior person in the travel industry told the economic observer that on the one hand, Didi hoped to gain increment by building a new platform; on the other hand, Didi skillfully evaded some things by creating a new “imaginary enemy” for itself, so as to achieve greater benefits. “For example, in the game, it’s better to have one more opponent fighting together than one person. It’s better if the opponent is still his own.” The person said.
Huazhu is an internal incubation project of Didi, which is no secret in the industry. Qixinbao information shows that huaxiaozhu’s operating company is Beijing hongyibo Technology Co., Ltd., and Zhao Yibo, its legal person and sole shareholder, is the vice president of Didi. And didi did not deliberately clear the relationship with huaxiaozhu, and said in the publicity that this is “Didi’s new brand”.
in order to avoid overlapping with Didi’s existing vegetable carpool and express business, Didi’s official once set a clear positioning and user profile for huaxiaozhu: different from the original express business, it is positioned in the young user market.
specifically, different from the ordinary online car Hailing pricing method, huaxiaozhu adopts the buy it now pricing method. When the user places an order, the system will estimate a price based on the distance, estimated duration, road conditions and other big data, that is, the price actually paid by passengers. It is similar to Didi’s carpool business and free ride mode, but there are differences. “Facing the young market” is to emphasize the differentiation of huaxiaozhu brand. According to Hua Xiaozhu, it focuses on affordable travel. At the same time, users can also get rewards through small games such as cash collection and check-in to reduce travel costs.
a senior executive of a travel company, who did not want to be named, told reporters that the pattern of huaxiaozhu is more like the previous free riding mode. First, its order receiving mode is booking orders, which is carpooling before boarding. Second, from the driver level, compared with carpooling, huapiggy drivers are more flexible. They use the semi assignment mode in order distribution, and drivers can cancel orders four times a day.
the executive further said that the capacity increment huaxiaozhu is looking for is actually the capacity lost due to the safety problem of free ride, but strictly speaking, this part of transport capacity cannot be engaged in the regular online car Hailing operation. According to relevant information, online car Hailing transportation license and online car Hailing driver’s license are required to operate, but there is no requirement for these two certificates in the registration standard of huaxiaozhu driver.
on huaxiaozhu platform, driver registration conditions mainly include: driving for more than three years, no criminal record, and no more than 12 points in three consecutive scoring cycles. An online car Hailing driver told the economic observer that the threshold is much lower than that for drivers on didi platform. Even if the driver’s score on didi platform is very low, as long as it meets the requirements of huaxiaozhu, they can also enter.
while focusing on “younger market”, Didi also packaged Huazhu as a brand focusing on “sinking market”. Hua Xiaozhu once said in an interview with the media that the market of the third and fourth tier cities and suburban counties is one of the target markets for Hua Xiaozhu, and the penetration rate of Internet travel in these places is still very low. It is worth noting that these places not only have low Internet travel penetration, but also have vague supervision on online car Hailing. Relevant information shows that in March this year, the preferred cities for huaxiaozhu in the test and operation stage are Zunyi, Guizhou, Linyi and other non first tier cities in Shandong Province.
the executives of the above travel companies said that the reason why didi wanted to operate in these cities was that didi hoped that Huazhu would not be strangled in the cradle when it was just launched, which means that “the countryside surrounds the city”. This is why Huazhu is particularly low-key when it is just launched.
since it is a travel brand facing the third and fourth tier cities and taking the low-cost route, why does Hua Xiaozhu choose to move from “low-key” to “high-profile” in the rhythm of external communication, and start to advance into the first tier cities relying on subsidies?
at present, it is still difficult to avoid being controlled in some cities. It is understood that on August 19, the Qingdao transportation official said on the microblog that after investigation by the municipal traffic and transportation comprehensive administrative law enforcement detachment, the “huaxiaozhu taxi” platform failed to obtain the business license of online booking taxi in Qingdao, and did not have the qualification for online car hailing, so it was punished.
according to the analysis of senior people in the travel industry, Didi’s launch of Huazhuo is more like a clever “bureau” set up by Didi. On the one hand, Didi is still a traffic platform, and entering the market with Didi’s signboard can gain more attention, especially in today’s market when large and small online car Hailing brands are mixed; on the other hand, huaxiaozhu suddenly changes The purpose is to adopt the strategy of “dividing troops” to weaken the supervision energy and provide more breathing opportunities for its main business network to avoid “illegal operation”.
it is worth noting that although didi has obtained business license in some cities, its compliance rate is still not high on the whole. A didi driver told the economic observer that 95% of the online taxi Hailing drivers in the market would not comply with the regulations if they could only operate with the “online booking taxi driver’s license” and “online booking taxi operating license”. In order to retain the driver, Didi also promised that if the driver was found to have violated the regulations, Didi would be reimbursed for the fine. “At that time, Didi can say, you see, my two platforms have been built. I can’t really catch all of them. How can we keep one? After all, the market is also relying on me.” The travel industry senior said.
as a matter of fact, Didi has been acting frequently since this year, except for the little pig. Relevant information shows that in July this year, Didi announced that its “didi carpool” business was renamed as “green vegetable carpool”, which is another independent brand created by didi in the subdivided travel field after Qingju bicycle and Li orange special car. In addition to its main business, Didi has launched errand running, freight transportation, community group buying and sharing motorcycle business this year. Meanwhile, on June 27, Didi opened its automatic driving service to the public for the first time.
for the frequent actions of didi this year, some analysts think that it is Didi’s hope to create a more comprehensive brand by expanding more business lines, so as to gain more favor in the capital market.
on July 21, it was reported that didi travel was preparing for the listing of Hong Kong shares. On the same day, on the official website of Ali judicial auction, part of the equity of “a global leading online car Hailing travel platform company” was put forward for the first time, with an initial price of 92 million yuan, which was finally rejected.
although didi said that the company had no IPO plan at present, according to the insiders of another travel company, Didi’s IPO plan was actually the news released by Didi’s investors. They hoped to cash in through listing as soon as possible, but they did not reach an agreement with Didi’s senior management, so they began to want to auction their shares. In fact, just before Ali’s auction platform, Shanghai United Property Exchange also listed Didi’s equity project and transferred 1823100 shares. Relevant information shows that the transferor is two subsidiaries of a state-owned enterprise.
some analysts believe that the reason why investors want to realize their cash is that they have insufficient confidence in the development prospect of Didi. According to media reports, Didi Zeng didi predicted that its main business would be profitable in 2018, with net profit expected to be close to US $1 billion. However, in 2018, due to the impact of the free ride accident, Didi announced that the loss in that year soared to 10.9 billion yuan. According to other data, by the end of 2019, Didi had accumulated losses of more than 50 billion yuan in more than seven years.
in order to enhance the confidence of investors, on May 7, 2020, Liu Qing, President of didi travel, disclosed to the media that “Didi’s core business has already made a small profit”, but Liu Qing did not specify how much to make a profit. Because didi is not a listed company and its finance is not open to the public, the authenticity of its profits remains to be verified.
“if your main business is really good, will you spend so much time on other business? You only want to build investor confidence by laying out more business lines when your main business starts to go down. ” The above travel industry senior analysis said. Google said the proposed media negotiation rules would put its free services in Australia at “risk”