my friend Lv Chuanwei domestic minority entrepreneurship is not to walk “shortcut”, a silicon valley returnees in China’s Internet jianghu follow the law of the jungle how to create a belongs to own a piece of the sky? In other words, under the make-or-break competition environment, everyone’s in by adversities hero, Lv Chuanwei compromise is to choose or choose to change the rules of the game? Sea turtles entrepreneurs is to adapt to the environment or change the environment? China’s Internet can follow the law of the jungle for a long time through entrepreneurship break? These are my concerns.
I think that, compared with these problems, a taxi App make unfair? Regulatory issues a taxi kill the App? Is insignificant. Even to say the least, no matter how the outside world, a taxi App has become a giant tencent, alibaba the layout of the mobile Internet.
2 years ago, at an Internet company in silicon valley, head of Asia Pacific region, to the outside world seems to be a typical three tenors crowd: with a high salary as executives in a high-tech company.
according to the rhythm of the original, Lv Chuanwei might spend their lives in the eyes of others envy, but the fate of the dramatic is that must exist “accident”.
in February 2012, at a time when he was on a business trip in the UK came upon the basis of technical development of the mobile Internet into the taxi service, activation of the current situation of Lv Chuanwei unwilling ambitions for this business trip.
a month after his return home to see his good friend zhi-guo li, and detailed analysis to the other party’s own experience: the combination of mobile Internet and online taxi software would be a big market, and the market is small, no one is doing at home.
Lv Chuanwei gushing about their analysis and research results, zhi-guo li but said nothing.
after the talk, Lv Chuanwei back to continue to do executives in silicon valley, zhi-guo li in his angel investment in China, day day by day the past, just like that.
until May 2012, Lv Chuanwei suddenly got a call from the zhi-guo li: “you’re home, introduce you to a few friends.”
in this way, after returning the matchmaking Lv Chuanwei through zhi-guo li, met a taxi fast wei-shing Chen, founder of the COO WenCheng Zhao Dong, vice President.
this time Lv Chuanwei just know, himself a taxi for the online App in domestic will fire up judgment is true, but it is not only he could see the market opportunity, rather than he crustily skin of head do you force to do it.
soon, Lv Chuanwei became CEO of quick take a taxi, and Zhao Dong, WenCheng management team become the controlling shareholder quickly take a taxi. He gave up all of silicon valley.
Suffered the law of the jungle
startup after Lv Chuanwei soon feel the characteristics of China’s Internet: imitation and malicious competition.
the first challenge is a competitor’s operations team personnel will be in line with direct or indirect way to encourage a taxi driver unload faster product, then the opponent issued a statement to the discharge of the malicious hat for yourself.
“silicon valley companies are not so competitive, we will put the focus on product and technology improvement.” This way of competition makes Lv Chuanwei expected.
the second challenge comes from spending money, it is because of this, online taxi industry suffered criticism of analysts.
is the most competitive place in Shanghai, in August of this year have rivals began to implement price subsidies for Shanghai taxi driver, a driver from downtown la passengers go to pudong airport can get subsidies of 100 yuan or so.
Lv Chuanwei should not give the driver to the airport industry subsidies, the reason was that the airport itself is relatively scarce, journey far, price is high, the driver also like to take this work. He think the company should subsidise cash to the driver at ordinary times less willing to live, so that more conducive to the rational allocation of resources.
Lv Chuanwei judgment is not equal to a competitor’s judgment, so the competition by high subsidies gathered a batch of driver.
these two challenges make Lv Chuanwei realize the cruelty of China’s Internet competition environment.
for a long time, the thought of the make-or-break makes many people feel that the outside world more focused on your success, but don’t care how you achieve success.
no compromise to take shortcuts
“you choose not to follow the principle of the law of the jungle because you have more or less noble? I don’t believe it!” . I asked Lv Chuanwei by his question.
his answer is: domestic Internet environment is to follow the law of the jungle, but more special taxi industry. Or other industries can play with the law of the jungle, but can not be online a taxi the industry.
now all face stronger pressure of public opinion and policy, to one another, this time in the form of irrational competition, will only bring more mandatory regulation.
“under the law of the jungle, with products and technologies, there is no market for driven company? I don’t believe it. Market-oriented approach may be a short-term gain shortcut to occupy the share, but at least the date in the long run, drive the progress of the Internet is still a new technology and new product forms, rather than the other.” Lv Chuanwei said.
face the dilemma, programmers from Lv Chuanwei made now that pr than rivals on the market, then highlight your core competitiveness from the product technology deployment.
online taxi industry perhaps than money in the short term, but is still a product level of competition for a long time. Meituan and handle cases also gave Lv Chuanwei confidence. Early group-buying competition, the shake handshandle with generous financial strength over Meituan unbalance, however, as the market gradually reduce, instead share overtaken by focusing on the product detail Meituan.
the particular way in a few steps: the taxi quickly product team to focus on customer retention rate of the link, will mainly focus on creating community atmosphere, design points, member and VIP system, driver directly by means of IM within the APP to communicate with users. Technical team to develop a set of independent intelligent analysis system, through the background analysis which orders should be heavily subsidised driver, what kind of small order not even subsidies. Operations team set up 7 x24 hours of customer service system, response to the driver or passenger feedback problems.
now, quick take a taxi and domestic only has integral, members and 7 x24 hours customer service software APP take a taxi.
Lv Chuanwei said: “the completion of the layout, I can say that although we don’t like his opponent on the pr campaign, unlike opponents crazy throw money on the market, but in these three products, operations, technology process, we all have their own unique advantages. Silicon valley’s entrepreneurial environment disdain plagiarism, domestic everyone in copy. But, UI interface can be copied, but the algorithm of background, push the logical order, the analysis of the data mining cannot be copied, this is not a short period of time can imitate.”
rural areas to encircle the cities
who is familiar with the Chinese history will find that there are too many repeat similar, invented by qi jiguang institution to help drive out the enemy of the Ming dynasty, zeng guofan is copied qi jiguang dynasty defeated the taiping heavenly kingdom.
rural areas to encircle the cities the success on the military strategy were also Lv Chuanwei intact copy into the business. In fact, this is not the first time someone will copy the military strategy to business, known as the marketing wizards shi yuzhu is by this method in the field of health care products and online games a success.
when the competition focus on expanding north to guangzhou, the city’s taxi business, fast taxi will focus on the city of zhengzhou, shenyang, shijiazhuang, Harbin.
Lv Chuanwei judgment at that time, click a taxi in Beijing have done is very strong, the future is likely to gain the business rapid expansion in Shanghai, guangzhou and shenzhen, quick take a taxi than rivals in terms of money, rather than confront to the occupation of second-tier cities.
is this time, the development team with the cost of 200000 yuan a taxi will take zhengzhou market, from the point of cost accounting, with the cost of the first-tier cities in magnitude. So Lv Chuanwei established the correctness of the idea, and then in 2 months time, quick take a taxi to complete the deployment of 30 cities throughout the country.
analysys international, according to data released latest fast taxi market share of 41.8%, click a taxi was 39.1%, hire car was 9.0%, the hornets a taxi was 3.9%, a taxi the small mi is 3.9%. After seeing the results, to persuade Lv Chuanwei returned to join fast taxi angels zhi-guo li specially make a phone call last night said Lv Chuanwei and his team TuYangJieGe good.
dialogue Lv Chuanwei:
q: what do you think some outside bad-mouthing online now the voice of the taxi industry?
Lv Chuanwei: hear the sound of the questioned me more steadfast, 3, 4 months of this year when a taxi industry for online a good voice, I feel unease, but all in good prove that there is blind spot, foam and uncertainty. Rarely in history has developed in a paean to industry, an industry wants to develop mature, had to go through twists and turns and questions.
q: what do you think money in share it?
Lv Chuanwei: online taxi industry and the first generation of Internet companies and electricity passes through the road, the beginning is to cultivate the market first, and cultivate the market means to change the user habit, by burning money, subsidies can shorten the breeding cycle, so I think money is normal. But our approach is to control the cost, which route need subsidies, through the calculation of background algorithm which route subsidies, rather than at no cost money, so it is burning money nor particularly outrageous. If an industry expands rapidly in a short term, on capital requirements will be higher, will form a high threshold, it is also a reasonable cost.
q: what are the differences with the Chinese Internet market?
Lv Chuanwei: difference a lot. Silicon valley in the United States is the fastest pace of urban life, and domestic faster than in silicon valley, especially the mobile Internet field. Silicon valley is in change, and is home a week cycle changes, online taxi industry, and even change by day cycle.
the other is the environment, business has a mature mechanism of silicon valley, and the nation’s largest characteristic is everything changes, no rules.
q: you’ve always said his team of high efficiency, can share a few really experience?
Lv Chuanwei: today to finish should do the work, this is called due diligence, do it with your heart will treat as simple things don’t work, but as breathing, can from different angles to consider carefully, this call with. Our core team should be able to do something, not just as simple due diligence.
in addition our wages 15% higher than the industry average, although increased manpower cost, but the enthusiasm of team to do things and recognition for the work will be higher than rivals, we set up a platform, to the team to create an atmosphere of respect, let them see development space, salary and be the best.
Via sohu IT