Baidu raid Scott: navigation through the night into the era of free

overnight, Scott and baidu in LB S positioning services in A close combat, promote navigation A pp into the era of “free”.

28, suddenly announced that baidu baidu map navigation will be permanent free, after more than four hours, was robbed of the lottery gold navigation voice response, also announced in the “gold navigation” and “gold map” on the two service free policy.

when the big O 2 O ambition is increasingly obvious, as a new mobile Internet traffic entrance, navigation and map service has become a mohican, lifeless navigation software vendors are encountering a cold wind from the Internet.

gold “cry” four hours

this is declared a navigation on the era of “free” Scott, was robbed the lottery baidu wildest dreams.

15 August 28, 14 points, while baidu map official weibo suddenly announced that originally is 30 yuan baidu navigation permanent free version 2.0. Baidu said the relevant person in charge of navigation, on mobile Internet, free navigation software is the trend of The Times, charging the navigation software has both free turning pattern will be baidu navigation.

, the there is no doubt that is gold. Scott navigation original price 50 yuan, in view of the owners to provide offline navigation and related value-added services. Data show that in the second quarter of 2013 China mobile navigation market, gold navigation with 30. 7% of the first. More than 50% of the Gao Deying revenue from car navigation business. After nearly four hours, Scott navigation finally announced in 19 points for free.

baidu sudden attack, let pay to vendors and users pay for the business model of gold on the back foot. Close to gold, insiders say navigation is free gold set of “more than a year ago you defined strategy, but the baidu are, first published messages for free.

on the news, gold shares tumbled more than 11%. Just released this week’s earnings in the second quarter of this year, according to Scott’s net revenue and net profit year-on-year decline in both, the net revenue of $38.2 million, and $40.2 million a year earlier. Net profit of $3.8 million and $8.8 million a year earlier.

however, baidu does not seem to be going to stopping. “The lions” one night, after baidu, announced a “full refund”. Baidu map’s official weibo said, “before we decide to buy baidu navigation users the full refund. A ndroid user refund process will be completed on September 30. IO S user can apply for a refund now.”

at this point, the mobile Internet traffic entrance of fire was lit. Outside the navigation between gold and baidu search “based on LB S life service platform war” the decisive battle has come early. But for users, and at that time China’s two biggest mobile phone navigation software is completely free, such a “good thing” was came too suddenly, let people by surprise.

baidu and the battle of ali

wherefore they said, should fight no battle unprepared. For “living on map” of gold, its software paid navigation app has been downloaded more than 7000 smartphones and pre-installed, as of the end of the second quarter of this year, with about 300 Wan Yue active users, free means that gold will lose a lot of revenue. The gold will be how to deal with?

this, Scott, chairman and C E O into from wu in response to reporters’ questions when quotes one word – “ma said, the so-called pursuit of long-term pursuit strategy, is to sacrifice the interests of the eyes”.

announced free in the evening, as from wu during the earnings call responded, “the coming of the mobile Internet makes map important entrance and user integral services, any sales to consumers in the mode of navigation software business model has hindered the people yearning for the mobile Internet.”

free for losses, as from wu doesn’t seem to worry about, he believed that gold is still more than $500 million in cash in hand, enough to support 3 years, 5 years or eight years.

in addition to rely on their own strength, Scott also rely on resources from alibaba. In may this year, about 28% of alibaba won gold at $294 million, becoming the first big shareholder. Turned from wu yesterday to the SMW reporter said: “ali talk to us about the first day began to advocate free, it should be said to be a driver.”

into from wu believes that for gold, all free is the need to step by step. “We are not a start-up, the start to do the Internet, 35 people, no burden and burden, a person eat don’t worry about his family. Our company is very big, not to say that to the market today that free can do, it is no good. Because with the capital market is a promise, with investors, is a matter of commitment. Before not systematic construction, the first is no income, the second is no user, two implementation.”

however, the advent of the era of mobile Internet, makes the decaying navigation software vendors have to face the cold wind from the Internet. Phone portability makes it with a natural connection to a geographical location, map rapidly became the new mobile Internet era flow entrance, O 2 O and LB S into to the eye under BA T one of the most creative sales market.

in the past few years, to develop the baidu baidu map, tencent WeChat carried SO SO map service, ali is by taking a stake in the raffle tickets won the gold map.

analysys, a think-tank, statistics show that in the second quarter of this year, gold, baidu map respectively by 31.3% (including 6.6% iO S apple map), 24.4% of China’s mobile phone market share of the top two, map the accumulative account teng – SO SO map with 2.3% seventh.

in just baidu world LB S points on the BBS, L B S director shen announced that baidu baidu LB S number of users has exceeded 200 million, to provide positioning service for 70000 A, PP, locate request up to 3.5 billion times A day. Mr. Li at the conference mentioned LB S products for many times, LB S means that baidu baidu has become the most valued the mobile terminal of the tool.

to compete with baidu, as from wu said: “the ecological system of competing we don’t lose to rival”. “Friends of business itself is a big platform, there are a large number of partners, but many are new O 2 O service. If these services are integrated into the map and navigation, we think we have the same opportunity, plus we have ali’s strategic investment, ali itself in this doing is very strong, so we have a lot of resources can borrow.”

shapeless business models

in the future the function of the map is not only a navigation. On the map page is a picture, but the future is likely to be an application, a beer and skittles, and map is embedded in the behind of the underlying data.

after gold with baidu map successively introduced a neighborhood search, provided based on the location of the restaurant, group, hotels, entertainment and other local service life, both sides have access to the public comments, click a taxi, where to go, elong and other Internet services, through an open platform and third-party software cooperation, on the function into the highly homogenized competition stage.

amoebic capital partners, A founder of koubei zhi-guo li, said in an interview with SMW reporter map just B A T O 2 O the beginning of the competition on the business, in short is A further competition in the field of the map, but nature is the life service of the big market competition. “Who mastered the flow and closed loop, who will become the largest in the industry, after baidu is now used to make your own integration, ali on navigation is the way by investing in the gold ring to come in, it will also make WeChat provides new thinking.”

and in the field of life services, zhi-guo li think is two business models, one is in a similar deals that trading behavior to gain commissions, the second is the advertising revenue, expect the two ways will co-exist for a long time, the proportion of advertising may be greater in the short term, because it is difficult to control and form closed loop in this industry.

2013 q2 China mobile mapping cumulative users share

(online mobile phone map navigation client/intelligent terminal only)

A, 31.3% gold map

B, baidu map 24. 4%

Map a map

C, 9. 3%

D, sogou map 9. 3%

E, navigation, dog 9. 0%

F, Google map (855.43, 6.88, 0.81%), 8. 8%

G, tencent (361.8, 5.60, 1.57%) real-time S O S O map 2. 3%

H, other 5. 6%

source: analysys international, sinolink securities research institute drawings: He Xin C FP for figure

SMW reporter Xie Rui intern QinXin yao