When Didi'S High-Rise Regeneration Transformer Business Is Upgrading

Around the changes of Didi's management in recent two years, some people in the industry are hesitant about the profit prospect of didi travel.

For the past two years, the company's management has been in constant turmoil. On September 7, ye Jieping, vice president of didi travel, vice president of didi Travel Research Institute and head of AI labs, announced that he would leave didi in the near future by issuing an internal letter to all staff. Since then, Didi confirmed the news, but didi said that the resignation was due to personal reasons, and Zhang Bo, the CTO of didi travel, will also hold the post of Ye Jieping.

There is a long list of departing managers. According to the 21st century economic report, in the past two months, Tony Qiu, COO of Didi's international business unit, and tiger Qie, vice president of Didi's international business unit and head of technology, ecology and development department, have successively announced their resignation. In addition, Fu Junhua, senior vice president of didi group and general manager of Pratt & Whitney travel and service group, and song Shijun, head of didi data science department, were also publicly reported this year.

In May this year, Liu Qing, President of didi travel, said in an interview with the media that Didi's core business had made profits or made a small profit, and there were no plans to lay off employees or raise funds. In July, some media reported that didi was rich in capital and its book cash was more than 50 billion yuan. However, investors had a demand for withdrawal, so they prepared to go public in Hong Kong stock market. According to the rumors of the IPO, Didi denied to the 21st century economic report that the IPO was not Didi's current best event, and the company had no relevant plans for the time being.

In the past three years, Didi's core goal has been set at 0188, that is, safety, 100 million daily global services, 8% domestic travel penetration, and more than 800 million Mau global service users - none of which has anything to do with profitability. To be sure, this reveals Didi's optimism about long-term ism. However, after years of continuous losses in the overall business, how to give the company's internal and external sustainable confidence has become the current proposition of Didi.

Management continues to be volatile

The year of 2019 is the year of "water reverse" for Didi.

In February of that year, a piece of news came out of the capital's "favorite". Didi's CEO Cheng Wei announced at the staff meeting that the company would be ready for the winter. In 2019, the company would "close down and transfer" its non main businesses. As a whole, it would lay off 15% of its employees, involving 2000 people. Since then, Didi has slashed innovative businesses such as takeout and minibus, and has shrunk the battle line in an all-round way.

At that time, an internal financial data of didi travel showed that the company continued to make huge losses in 2018, with a total loss of 10.9 billion yuan. The main reason for the loss is subsidies. Didi invested a total of 11.3 billion yuan in driver subsidies in that year.

Before that, in 2018, two major public opinion events put didi under great pressure. In August 2018, Didi launched the free ride business nationwide, and it was not officially resumed until November 2019.

Also in 2019, Didi's management began to change continuously. According to the incomplete statistics of 21st century economic report, in only 2019, at least four management levels of didi have left, including Li Zijian, senior strategic director, platform passenger operation director and regional general manager of didi travel, Xu Xun, director of augmented reality of didi travel, Yu Jun, senior vice president of Didi products, and Li Jianhua, chief development officer of didi travel. In the first nine months of this year, Didi's management turnover list added five more.

"No profit prospects", "no hope, listing in the near future" Some inside didi expressed such confusion.

The 21st century economic reporter learned that the latest news of Didi's profit is still that Liu Qing's core business has made a small profit, but there is no clear information about the specific profit and sustainability. "Inside Didi, more should still be considering growth." A person close to didi told the 21st century economic reporter.

Although didi is striving for growth, I am afraid the number is not optimistic. Although on August 25, Didi's global daily orders for online car hailing, taxis, hitchhiking, bicycles and Valet driving exceeded 50 million for the first time, and the "three-year target" of 100 million orders per day has been more than half, but from the perspective of overall active users, Didi may still have a growth bottleneck.

According to the data obtained by 21st century economic reporter Yiguan international, in Q2 2020, although the average daily active number of didi increased by 35.59% compared with the previous quarter, the overall number of active people fell by 4.73% month on month. At the same time, compared with last year, Didi's Q2 user data declined in an all-round way, with the overall number of active users and the average daily number of active users falling by 26.92% and 12.79% respectively.

Business reengineering and upgrading

In addition to the management changes, there have been many changes in Didi's business since this year.

Following the upgrading of autopilot to an independent company in 2019, Didi launched a new independent brand "huaxiaozhudaiche" in July this year to target the young user market.

The 21st century economic reporter learned that the new business is in the charge of the newly established independent team within didi travel, which is independently operated and independently researched and developed. The person in charge is sun Shu, vice president and regional general manager of didi car Hailing platform company. Sun Shu reported to Cheng Wei.

On September 1, Didi issued an announcement to upgrade its "didi taxi" business to "fast new taxi", and stated that the fast new taxi would adopt the mode of independent operation, and would open small program entrance in the future. Didi shidonghai will be the general manager of Kuai's new lease, reporting directly to Cheng Wei.

Although independence has the possibility of independent financing, the reporter understands that the independence of these two businesses of didi may focus more on user growth.

"At present, the online rate of the taxi industry is still very low, and the proportion of online orders nationwide accounts for only 10% of all taxi orders." Some people close to didi analyzed it to the 21st century economic report. According to the data of the Ministry of communications last year, the average daily taxi service was 110 million person times. According to the average of 1.8 people per car, the daily orders generated were about 45 million to 50 million, "while Didi's taxi business covers more than 300 cities in China, and the average daily order volume last year was only 3 million, less than 10%. This is a huge space for growth, which must support the three-year goal of 0188. "

"In order to achieve the target scale, Didi has to have more business lines," Gu DASONG, executive director of the traffic law and development research center of Southeast University, analyzed to the 21st century economic reporter, "for example, in the field of taxis, the current trend of taxis online is relatively obvious. All localities are promoting the integration of patrol vehicles (cruisers and online Hailing vehicles) and making efforts to integrate patrol and network integration The direction of cooperation can increase (didi) market share. "

The independence of huaxiaozhu business is also to attract new user groups. "Young users are more price sensitive and willing to accept cheaper products. After independent launch, there will be some targeted promotion methods. For Didi, sinking the market will also be an increment." Those close to didi pointed out.

In addition to independent business focus, Didi's other direction this year is to carry out refined operation in its inherent business, such as upgrading carpool business to green vegetable carpool with brand-new brand logo, trial implementation of ex gratia express and didi express, and new start of freight business and errand business.

In fact, Didi's current business adjustment and upgrading are not without results. According to easy view international data, in the second quarter of this year, the average daily startup times of didi travel app increased by 48.13% month on month, and increased by 17.6% compared with last year. This shows that users' use frequency of didi travel app is increasing.

However, it is still a challenge for didi to stabilize the "military heart" internally and to provide a convincing and complete logic line to the outside world. At present, the main task of Guti is still the main business. "The main business, such as carpooling, which is inclusive and efficient, should be well done. In terms of personalized business, it should be more solid and quality-oriented, which is where its space lies."