At the beginning of this year in Zunyi, Linyi and other cities after trial operation, drip internal hatching flower pig car is recently in a number of cities to start subsidy offensive. American tour bus, AutoNavi car, etc. have followed the issuance of coupons, many years ago, the network car price war seems to be playing out again. With a post-epidemic recovery in consumption and new growth targets for drips, Drip is trying to turn piglets into another growth engine for the network’s owners. But embarrassingly, the piggy taxi has recently been interviewed by transportation departments in Tianjin, Qingdao, Nanjing and other places, involving non-platform qualifications, driver and vehicle non-compliance and other issues.
Sina Technology Zhang Jun.
What once gave drip headaches has now become a tight spell for piglets. In the network car policy has long been clear, why do piglets go the old way of non-compliance? How can a piglet with high hopes crack the compliance challenge?
Meet compliance challenges.
It is reported that the flower pig project from the end of 2019 to start, to operate in an independent brand way, drip to provide technical, financial and other support. In March this year in Guizhou Zunyi, Shandong Linyi and other places to start testing operations, the end of July this year officially announced the launch of large-scale expansion.
But the project didn’t go down well at first.
As early as July this year, flower piglets in Tianjin offline publicity and driver recruitment were interviewed called off. Tianjin transportation department pointed out that the network car platform enterprises must first obtain operational qualifications, not for unqualified personnel, vehicles to pay. This also led to the flower piglet is not currently in Kaicheng, Tianjin.
However, in Qingdao, Nanjing and other cities that have already opened the city, flower piglets have also encountered interviews. Qingdao Municipal Transportation Bureau pointed out that the piglets did not obtain a business license in Qingdao City, Nanjing Municipal Transportation Integrated Administrative Law Enforcement Supervision Bureau determined that the piglets were suspected of giving orders to unqualified vehicles and personnel.
Sina Technology called the Beijing Municipal Transportation Service Supervision Hotline to inquire about the qualifications of piglets. One staff member said the Piggy App was not currently operationally qualified in Beijing. However, she did not say whether the relevant departments in Beijing will follow up on the piglets to take interviews and other measures.
Li Wei, a senior partner at Hansheng Law Firm in Shanghai, told Sina Technologies that the interview was related to the speed of response from local governments, attitudes towards administrative regulation, and understanding and interpretation of legal provisions, but that not inginging into the interview did not mean that there was no violation. There is a risk that piglets will be required to rectify their problems in the event of doubt about their qualifications. Therefore, whether the driver or passenger attached to the platform, there is a certain risk of software use, or even recharge risk. In the event of a shutdown, there may be a corresponding economic loss.
In fact, since the introduction of the New Deal in 2016, network car enterprises in a city to operate in compliance, it is necessary to achieve “three certificates in one”: network car enterprises to obtain a local “network reservation taxi operating license”;
As far as the “Network Reservation Taxi License” is concerned, the main operating body of the piglet taxi is Beijing Hong Yibo Technology Co., Ltd. Although the vice president of Drip Zhao Yibo as the legal representative, and 100% of the shareholding, but Beijing Hong Yibo Technology Co., Ltd. and the operation of the main body of drip there is no direct investment relationship, which may also be the local transport authorities found that the piglets are not compliant reasons.
Regarding the platform qualification issue, drip to Sina Technology response, said that the piglet is communicating with the competent authorities.
It is worth noting that in August this year, Drip was registered in Tianjin to set up Flower Piggy Technology Development Co., Ltd., which is 100% owned by Didi Chuxing Technology Co., Ltd. The move may be an attempt to get piglets to share net license plates with drips.
In addition to platform compliance, driver and vehicle compliance is also an important part of network vehicle compliance, but also in recent years, the focus of traffic supervision.
When the piglets hit the line, officials said they were only open to existing registered drip drivers, while adopting safety standards similar to 2000 drops. It’s worth noting, however, that The Drop Platform is also currently pushing for compliance with its platform drivers and vehicles, which is not yet 100% compliant.
Another security-related issue is the platform’s operating rules, which may directly affect the multiplier relationship. In the exchange between Sina technology and pig drivers and passengers, the driver’s dissatisfaction is mainly that the platform does not have a drip-like advance function, passengers do not pay after the end of the order, the driver will not get the benefit of the order;
Drip to Sina Technology in this regard, said that the piglet will continue to iterative operation strategy, and continuously improve the experience. At the same time, for drivers and passengers who break the rules, piglets will also take appropriate measures.
Sinking market growth first?
The official positioning of the piglet ride is “to create a new brand of affordable travel”, and hit the “the whole network ultra-low price” and “10 billion subsidy plan” slogan.
Sina Technology, after experiencing the flower pig ride, found that in many promotional means are also very similar to PingDuoDuo.
According to the current rules of piglets, users can check in every day to receive a random car allowance, invite friends to help can also receive an additional 50% coupon; Under the coupon and promotion award, even the birth of many flower pig’s mutual 薅 wool QQ group, WeChat group.
(Pictured: Drip Express drivers post advertisements for piglets on their vehicles)
In addition to the user side, flower piglets also launch drivers to promote. Flower pig driver Wang Shifu told Sina Technology that Drip had specially organized drivers to learn how to use flower piglets at the training base and had distributed promotional posters and two-dimensional codes for drivers to post in the back seat of their vehicles. The promotional rewards for drivers are more diversified, with a cash of $10 for each driver invited to complete the first order, and up to $6 for each passenger invited to register for a piglet.
In fact, the early target market was also targeted at the sinking market with a piglet ride similar to PingDuoDuo’s “fission marketing”.
Take the data at the beginning of 2019 as an example, aur polar data show that nearly 70% of didi Chuxing users come from first- and second-tier cities, and more than 50% of China’s netizens are distributed in the third-tier and below cities, which means that the network car market a single big drop in the sinking market there is a broad user growth.
What is the potential of a sinking market? This has been proven in PingDuoDuo. In the second quarter of this year, PingDuoDuo’s annual active user numbers were moving closer to Alibaba, the old e-commerce giant, and still growing at a high rate.
If according to the ideal development trajectory estimates, in Cheng Wei set a 100 million-day order, the global monthly living users of more than 800 million three-year target, the piglet taxi is expected to become a drop network about the new growth engine of the car business.
Wei Dong, CEO of FAW, has recently expressed similar views in public. He believes that after the outbreak faced economic volatility, consumers on a safe basis to seek cheaper travel products, product sinking can bring business development opportunities. Therefore, the growth of the network car market in four or five tier cities is a huge opportunity.
However, unlike the situation faced by e-commerce enterprise PingDuoDuo, according to the new policy of the network car to the network car enterprise requirements, if it is not possible to share the network license plate with drip, then every piglet into a city, must first apply for the corresponding license in the local. If you follow this line of thinking, the expansion of piglets will be extremely slow, which may be why piglets choose to open the city before they are qualified for operation.
Left and right hands to each other?
After the outside world gave the piglets the nickname “PingDuoDuo”, the piglets took a ride in August this year to make a first- and second-tier city.
On August 17-23 this year, piglets took a ride in nine cities: Beijing, Guangzhou, Hangzhou, Nanjing, Chengdu, Zhengzhou, Qingdao, Hefei and Taiyuan. These cities are also in contrast to the impression that piglets are focused on sinking markets.
In addition, in terms of drip-drip network car business, it also has fast car, carpooling and other dominant low-cost services in the first and second-tier market, how to differentiate the piglet car, become a very critical issue. In the express business, Drip launched a lower-priced special express, in the carpooling business, Drip has just upgraded its brand independent, upgraded to vegetable carpooling.
(Figure: Drip Express, Vegetable Carpool, Flower Pig Ride Price Comparison)
Take Sina Headquarters Building to Beijing Capital Airport T3 as an example, the journey is about 38 kilometers. Express estimated 103 yuan, special express car price of 86.6 yuan, vegetable carpool estimated 52 yuan, while the piggy car rebate 20 yuan and 4 yuan allowance deduction, the estimated price of 59.78 yuan (original price 83.78 yuan). In contrast, the special express, vegetable carpooling and flower pig ride in the price range is very similar.
Drip to Sina Technology said that the main affordable piglets, positioning is a group of young users, three or four-tier cities are just one of the target markets for piglets. Whether it is third- and fourth-tier cities or first- and second-tier cities, there are a large number of unsatisfied travel needs. As for product differences, carpooling is ride-sharing, piglets are ride-sharing, so carpooling with vegetables belongs to different products;
However, into the first- and second-tier cities of the flower pig and drip of the original network car business will still have a certain degree of re-engagement.
(Figure: Drip App meets flower pig app users)
At present, the piglet ride app is independent of the drip app, and has a separate account system on the passenger side, and drip is not interoperable. According to Aurr light data, the two apps have a 53.3 percent user re close rate.
For drip-drip drivers, there is sometimes a choice between the two. Flower pig driver Wang Shifu told Sina Technology that overall the price of piglets is lower than fast cars, and drivers get less from it. When he has a single on drip app and flower pig app, he usually prioritizes orders for drip app.
Then lead to a price war.
The large number of concessions and subsidies for piglets to take a ride is also stimulating other net-calling players.
Just as the piglet ride was officially announced for launch in July, there was media reports that the group was in frequent contact with its travel suppliers and planned to increase subsidies to users. Users receive a discount of 20% to 30% for each single order, with the goal of gaining more than 10% of the market share in mainstream cities.
(Picture: Promotional SMS of Flower Piggy and American Group)
Since August, Beijing office worker Wang Ming (ahuasc) has received several days of promotional text messages from piglets, saying that the ride can be reduced by 20 yuan. Unable to resist the attraction of the offer, he decided to give it a try. But for the text message bombardment of this form of promotion, he said he still hurt the user experience.
At the same time, he also received a preferential text message from the U.S. tour. After landing on the U.S. Mission App, he found that the U.S. Tour bus issued a number of 8.5 percent and 9 percent discount coupons, up to 20 yuan. In addition, the U.S. tour also issued a number of 3 yuan and 5 yuan coupons.
This scene seems to have known each other. In 2018, when the U.S. tour bus landing in Shanghai, the two sides set off a subsidy war, and finally by the Shanghai transport authorities interviewed.
But this time there seem to be more travel companies involved in the war. AutoNavi and Baidu, which use the aggregation mode, have joined in, Baidu Maps launched summer car-calling benefits on August 24-30, with a weekly check-in voucher of up to 36 yuan; AutoNavi has launched a 100-yuan ride package, inviting 2 friends within 12 hours to help get it for free;
When the travel field of Big Brother drip set off a price war, the damage to other net car players can be said to be huge, but also had to follow up to prevent their share is eaten away.
But there are different views in the market. At a forum in August, FAW CEO Wei Dong said that the travel industry has passed the stage of brutal growth, at this stage need to fine-tune operations, improve products and services. “Objectively, market factors have changed, and it is difficult to achieve large-scale growth simply by subsidies and low prices, nor can it be a sustainable direction of development.” He said.
In an age of drip-fast and drip-drip Uber competition, crazy subsidies do bring huge financial burdens to drips while driving market share growth. The U.S. mission’s losses have also intensified in the 2018 subsidy war with Drip.
For subsidies and price wars, drip-drip to Sina Technology said that the subsidies for piglets are mainly in the early stages of promotion, hope to be used on the blade, such as the first single user, is a relatively low input and efficient way. “We believe that healthy competition must be a good thing and can improve the quality and level of industry development.”
In low-tier cities, which have not yet been fully satisfied with their travel needs, there is no doubt that there is a huge market space for piglets. In the process of gradual recovery of consumption after the outbreak, more cost-effective travel services will also be favored by all users.
Under fission marketing and billions of dollars in subsidies, piglets are taking a ride at a much faster rate than the start-up speed of the drip-drip truck. However, drawing on the development of drips over the years, especially after the windmill incident, safety and compliance issues should also become the next top priority of piglets.