The first ride is coming. On October 8, Dida travel (hereinafter referred to as “Dida”) officially submitted its prospectus to the Hong Kong Stock Exchange and planned to list on the Hong Kong stock exchange. Haitong International Capital Co., Ltd. and Nomura International (Hong Kong) Co., Ltd. were the co sponsors. According to the prospectus, Dida is a technology driven mobile travel platform, focusing on the development of free riders and taxis. < / P > < p > according to the company’s information investigation, the operating company of Dida travel is Beijing Changxing Information Technology Co., Ltd., which has completed four rounds of financing since its establishment, and has obtained a total of 130 million US dollars of financing from IDG capital, e-car.com, Chongde investment and Weilai capital. The latest round D financing was invested by Weilai capital in March 2017, in which Li Bin, chairman of Weilai automobile, was the partner. The specific amount of investment was not disclosed. < p > < p > it is estimated that it will take 3 to 6 months from the submission of the IPO application to the IPO listing. Wang Jiyue, a senior investment banker and former sponsor representative, told travelers that becoming a public company has many advantages. First, they can get financing; second, they can improve their visibility; third, they can help to reduce the pressure of compliance. They will not be shut down as easily as small platforms, but the most important thing is to improve competitiveness. On the first working day after the National Day holiday, Ms. Li, who lives in Baoshan District, once again took the ride at the gate of the community and went to the Pudong office 20 kilometers away. When she was pregnant, she took the female owner’s car to and from the company, and now both have become friends, often commuting together. Ms. Li told a traveler that long-distance ride in the city is very cost-effective. Now that Dida is on the market, the family can be less worried. < p > < p > hitchhiking was once a neglected sector. However, according to the frost Sullivan report, the total transaction volume of China’s free ride market is expected to increase from RMB 14 billion in 2019 to RMB 113.9 billion in 2025, with a compound annual growth rate of 41.8%. Wang Jiyue believes that what the capital side is interested in is not the travel platform, but the imaginary space for the new economy company to realize after obtaining sufficient users. < / P > < p > in the view of the industry, Dida listing helps to regulate the free ride industry. However, the industry is still faced with the traditional problems: it is difficult to leave the subsidy, the irreplaceable is weak, and can not withstand any security risks. A traveler inquired about this with Dida travel. The other party did not comment on the temporary inconvenience. Since its establishment for six years, Dida has become a leading enterprise in the domestic free ride and taxi online booking market. According to the report of Frost & Sullivan Frost & Sullivan consulting company, Dida ranked first in the free ride market with a market share of 66.5% in 2019, and ranked second in the taxi online booking market. < p > < p > according to the prospectus, as of June 2020, Dida has provided hitchhiking services in 366 cities across the country, with about 19.2 million registered and 9.8 million certified free riders. The revenue of Dida travel is mainly divided into three parts: collecting service fee from the owner of free ride; charging service fee from taxi driver; charging advertising fee and providing other services. In terms of performance, Dida’s revenue in 2018, 2019 and the six months ending June 30, 2020 was 118 million yuan, 581 million yuan and 311 million yuan respectively. Since 2019, Dida travel has been profitable. As of the first half of this year, Dida’s gross profit margin was 82.2%, the adjusted net profit was 151 million yuan, and the adjusted net profit rate was 48.6%. < p > < p > among them, the free ride business is a profit cow. According to the prospectus, the total transaction volume of Dida platform (GTV) in 2019 is RMB 11 billion, of which the GTV of the free ride business is RMB 8.5 billion, and the GTV of the free ride business accounts for 77.3% of the total GTV of the platform. Dida charges the service fee according to the starting price and mileage. In 2019, the average service rate is about 6.3%, and the revenue is 5.334 million yuan, accounting for 91.9% of the total revenue in the same period, showing a trend of continuous increase. At the same time, Dida began to charge taxi drivers in pilot cities in August 2019, and the annual service rate in 2019 was 4.9%. Dida helps taxi drivers reduce the time of blind cruising and improve the efficiency of receiving orders. However, taxi drivers often complain about one passenger, which is equivalent to paying two parts of money, which makes the already depressed purse worse. < / P > < p > Dida is a typical asset light enterprise, which mainly provides transaction information matchmaking service, rather than self owned fleet. Novel coronavirus pneumonia has also been a great shock to the transportation industry. Song Zhongjie, the founder, chairman and CEO of Dida, is 53 years old. Previously, he worked in the marketing positions of China’s Hewlett Packard, Google China and other Internet companies, and later set up a group buying website, didaituan. According to media reports, song Zhongjie, who met the bottleneck of the group buying industry at that time, was annoyed by the inconvenience of taking a taxi on the roadside. He happened to see that the private cars driving were empty for several seats, and then led the entrepreneurial team to switch from the group buying track to the free ride. < / P > < p > Song Zhongjie once told the media, “doubling 1.4 billion seats in the future and tripling them will be 2.1 billion seats. Even if only 1% of the 700 million seats are shared, there will be 7 million seats. Can’t 1% be shared? I think it can be done. ” < p > < p > according to the data of AI media consulting agency, it is estimated that by 2020, the number of free riders in China will reach 249 million, and the demand for free riders in China has existed for a long time and will increase day by day. According to the frost Sullivan report, the total transaction volume of China’s free ride market is expected to increase from RMB 14 billion in 2019 to RMB 113.9 billion in 2025, with a compound annual growth rate of 41.8%. < / P > < p > the competition in the hitchhiker industry is very fierce. Due to the transaction fees earned by the matchmakers, the profits are very considerable, which leads to the fact that in addition to the traditional travel companies, even map service providers are trying to get a free ride. Consumers who are “spoiled” can hardly have so-called loyalty. They often follow the tide of coupons. < p > < p > in the early stage of market promotion, Dida, which adopted the mode of exchanging money for market, suffered huge losses. In 2017 and 2018, Dida’s service cost was RMB 25 million and RMB 48 million, accounting for 40% to 50% of the total revenue in the same period; the sales and marketing expenses in the same period were 99 million yuan and 1 094 million yuan, which were 2 times and 9 times of the total revenue of the same period. < / P > < p > by 2020, after the completion of the free ride market cultivation, Dida began to rely on the advantages of having a large stock of car owners and passengers, so as to facilitate the transaction, and began to significantly reduce the subsidy expenditure. In 2019, Dida’s subsidies and incentives to hitchhiker owners and taxi drivers only accounted for 4.6% of the total revenue. In the first half of 2020, this proportion decreased to 0.03%. < / P > < p > it’s too cold at high altitude. As the biggest rival of Dida travel, Didi travel is also increasing the size of its layout. First, it has independent carpooling with vegetables, and has arranged huaxiaozhu to take taxi and add free riders. Recently, it has also restarted its fast brand and upgraded its taxi business. Moreover, the traditional large-scale taxi companies are not willing to work for the platform, and have built their own independent call platform, and give a lot of car subsidies. How to avoid being involved in the subsidy war and keep the leading position has become the biggest challenge for Dida. Song Zhongjie, who has experienced the bloody baptism of the hundred regiment war, once told Netease technology’s “mirror mirror mirror” column that when competing, it should go all out to win the first place, which means that speed and scale should be given priority, and cost and efficiency should not be taken into account too much; the speed of financing is crucial, and it is not so important to have a higher valuation and a lower valuation. Because of this, before the last round of carpool war, Dida became a survivor with the financing money put into the purse. < / P > < p > in interviews, the word “safety” is often mentioned by observers. In May 2018, a female passenger encountered an accident while riding a hitchhiker under Didi. As a result, the domestic free ride industry was in a state of depression, and the night long distance carpooling list was closed and the service was suspended. Zhu Wei, director of the communication law center of China University of political science and law, told travelers that in the field of public transport, the public has a very high demand for safety. Both competitors and players in the traditional transportation industry are always staring at the free ride service. Once the wind blows, it is easy to be alarmed. In November 2019, Xu Yahua, director of the transportation service department of the Ministry of transport, once stressed to the free ride industry that all platforms must strictly abide by the safety bottom line, can not provide illegal online car Hailing service in the name of free ride, respond quickly to deal with passenger complaints, and ride car drivers can not be profit-making. < / P > < p > it is worth noting that there is still a lack of top-level laws and regulations to regulate and restrict the free riding. At present, the relevant laws and regulations are usually applicable to online car Hailing service, but can not be directly applied to Dida business model, free riding and smart taxi services. The regulations issued by local governments have made the free riding industry generate a lot of compliance costs. For example, around the issue of market access licenses, Dida hitchhiker received a total of 77 administrative fines, with a total fine of 2.07 million yuan. < / P > < p > it is worth noting that Dida is trying to find a new way to cooperate with local traffic management departments and taxi industry associations to promote smart taxis, so as to avoid the tension of competition and optimize the living environment. < p > < p > it is understood that the three parties take the lead in the pilot project in Xi’an, where passengers can scan the code and click to call taxis and evaluate taxi drivers; the thermal map issued by Dida can also dispatch drivers to the areas with the most transport capacity. Since then, the driving data, transaction data and service data of cruise taxis have been online. At present, the empty driving rate of Xi’an cruise taxis has been reduced to 30% – 35%, which is lower than the national standard of 45%. Privacy Policy

By ibmwl