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By Wei Yuqi
Source: new knowledge of science and Technology (ID: kejixinzhi)
On October 8, Dida travel officially submitted its listing application to the Hong Kong stock exchange. According to the data in the prospectus, Dida has become the number one player in the free ride market, accounting for 66.5% of the market. With Didi’s preemptive step, Didi’s new trend has become the focus of attention.
The “high-profile” of “group buying” was announced in the next three years, and the target of “small pig investment” was almost not set in the future. Compared with the previous actions with high attention, another action of didi has significantly lower attention, which is its financial business.
From the launch of auto insurance in 2015 to the recent gray scale test of “didi monthly payment”, all these indicate that didi has not given up its financial business. Didi has high expectations for finance, which can be seen from the code name of the financial department in Didi. It has been given the code name “Manhattan” with the same name as the US atomic bomb research program.
However, the external environment of Didi’s Manhattan Project is even worse. It has to face not only WeChat and Alipay, which have risen to the national level, but also more and more Internet giants have noticed the value of financial business.
This not only makes Didi’s financial business unclear, but also makes the financial business another intersection between the two generations of Internet giants.
01 low key didi Finance
Although didi has many competitors in the online car Hailing industry, it is a fact that no one can shake its position. Compared with this, Didi’s financial performance is somewhat unsatisfactory.
According to a financial report in November this year, employees of didi Finance disclosed that “the loan balance of didi finance is less than 20 billion”, and its Gmv in 2017 reached US $25-27 billion (about 150 billion-162 billion yuan). It can be seen that even after three years of development, the volume of Didi financial business still does not match the transaction scale.
More intuitively, if we take revenue as the yardstick, financial business is already the third largest business of meituan. From 2016 to 2019, the financial business contributed 290 million, 1.2 billion, 8.8 billion and 16.1 billion revenue respectively to meituan, and its proportion in the total revenue increased from 2.25% to 16.57%. The starting time of the two is around 2015, and there is no significant difference in the starting stage.
At the same time, although didi has six financial licenses in hand, the core licenses such as consumer finance and banking are still in a state of vacancy. In this regard, the relevant person in charge of didi said that didi will deeply cultivate the financial ecology and accelerate the acquisition of more valuable financial licenses.
Although the status quo is not satisfactory, but from the action of Didi, it has no intention to retreat.
In June this year, Didi upgraded the structure of its financial business unit. The group’s vice president of Finance and operation management, youyue, will also serve as the general manager of the financial business unit and report to senior vice president Zhu Jingshi. At the same time, we set up a financial ecological management department to focus on the operation and management of licensed business, and continue to deepen external cooperation.
Recently, drops and grayscale test “drop month pay”, this product is similar to Alipay’s flower and Jingdong’s white stripes, its rule is also “consumption this month, next month repayment.” Users can enjoy a maximum interest free period of 38 days. For users who are overdue for more than 15 days, Didi will suspend their use of taxi service, and take measures not limited to account freezing and cash withdrawal / consumption restriction.
According to a monthly report of didi finance’s payment business obtained from people familiar with the situation, the daily orders of its payment business have reached million level since the second half of this year, with nearly 30 million users.
For a long time, traffic and scenes are the biggest foothold for Internet giants to enter the financial industry, but also their advantages. The reason why didi refuses to retreat is also related to this.
At the beginning of November this year, Didi officially announced that the monthly life in October would exceed 400 million. Previously, in the next three-year goals announced by Didi, Mau directly pointed to 800 million, which shows that didi has a huge congenital advantage on the user side. In the scene, Didi’s leading financial leader is the automobile insurance business closely related to automobiles, which is displayed in the introduction of financial business on Didi’s official website ”Content of.
At the same time, in terms of business, Didi has made a layout around the six licenses: Insurance consignment license, micro loan license, third-party payment license, financial leasing, financing guarantee and insurance license. At present, Didi’s financial products are divided into three categories in the independent didi financial app, which are financial management, loan and insurance, including didi loan, jinjubao and other single products.
At that time, Didi Insurance Co., Ltd. and didi Insurance Co., Ltd. were launched in July 2015. At the same time, Didi also cooperated with PICC and Zhongan insurance companies to guide the latter.
Even so, the progress of Didi’s financial business is still unsatisfactory, probably because of its attributes. Idle away in seeking pleasure from the US group, the more expensive consumption scenes, the less the distance from the “car” is, but the overall consumption scenario is still too single. And there are competitors on the “car”. At the same time, we have to face such giants as Alipay in other sub sectors such as small loans. It can be said that the current situation of Didi’s financial business is caused by the internal and external “pressure”.
02 two generations of giants boarded the same ship again
In January 26, 2014, Cai Fu Tong modeled the custom of red envelopes in Chinese people during the Spring Festival. The new year’s red envelope was launched on the official account. Users could send or receive red packets to friends when they were concerned about their accounts.
This function has achieved the effect of viral transmission after launch, greatly reducing the gap between WeChat payment and forerunner Alipay. Since then, most of the market share of the domestic mobile payment industry has been occupied by Tencent and Alibaba, which are regarded as the representatives of Internet companies to do finance.
Today, although the two still occupy a huge leading position in mobile payment, there are still other Internet enterprises constantly pouring into the financial industry including payment.
Take payment as an example. This year alone, several Internet giants have laid out this business.
In June, 360 finance launched a credit sub product, benchmarking ant’s Sesame credit score; in July, meituan’s “monthly payment” product was officially launched; and byte beat also launched the “rest assured flower” in the credit payment field in November.
Although there are more and more competitors, Tencent and Ali are still the two big mountains in the industry from the current market situation, and their status is unshakable.
In fact, the follow-up enterprises did not underestimate the strength of Tencent and Ali, nor overestimated their own capabilities. They all had reasons to do, including didi in the travel industry.
First of all, both the traditional financial industry and Internet finance have the characteristics of high profits, which is a huge temptation for any enterprise, especially in the Internet industry where losses are normal.
Taking didi as an example, Cheng Wei only admitted that the amount of losses disclosed was as high as 10 billion yuan. He once said in an internal letter in 2018 that “in the first half of 2018, the company’s overall net loss exceeded 4 billion yuan, and we have not achieved profit in the past six years.”
Some people in the industry speculated that “if drip loan can achieve a balance of 100 billion yuan, it means 3 billion yuan in terms of earning three point difference, which can pull the company to profit.” We can see the strong temptation of financial business to Didi.
Secondly, from the perspective of transaction, China’s mobile payment penetration rate, which is the first in the world, has sent large-scale transaction data to the enterprises involved. According to AI media consulting data, in the first three quarters of 2019, the scale of domestic mobile payment transactions exceeded 250 trillion yuan.
Whether it is the dripping industry or the American industry in the local life industry, it has to rely on WeChat payment or Alipay on the way of payment. This will make the two face a serious problem, that is, competitors can control their user data and enhance their competitiveness.
Or take drops as an example, Ali’s harrow travel and compete in the field of bicycles and net cars. If the drop is completely dependent on Alipay in payment, there is no doubt that there is no small risk.
Similarly, the United States, which is fighting hard with Ali in the field of local life, will face the same problem if it relies on Alipay in terms of payment.
Thirdly, compared with the traditional financial institutions, although Internet enterprises lack relevant experience, they have unique advantages, that is, large-scale individual users.
In fact, it is not difficult to find that the Internet companies that launched financial services all have their own super apps, with hundreds of millions of users. For example, according to Tencent’s third quarter report in 2020, the monthly active users of wechat and wechat reached 1.21 billion, and that of ant group was 711 million.
Therefore, even if it is only for diversion, the “toll” that Internet companies receive from financial institutions is not a small income, and there is almost no cost in the initial stage.
03 anxiety of Internet companies
In 2016, CEO, the US delegation, first put forward the idea of “the second half of the Internet”. From Internet to Internet plus, it means the end of an era and the coming of another era.
For “Internet plus” Wang Xing, this is also what the US delegation will do next. “The development of China’s Internet in the past 20 years has brought us a lot of changes, but these changes largely remain on the surface. Next, we need to consider how to help traditional industries improve efficiency and reduce costs.”
Wang Xing’s “Internet plus” is not simply moving the traditional industries to the online industry, but further deepening the traditional industries.
One of the reasons why giants embrace traditional industries is that social networking, e-commerce and group buying belong to the category of consumer Internet, which can not be separated from the support of a large number of users. However, the reality is that the demographic dividend of China’s Internet industry has begun to decrease.
On the whole, “China Internet development report 2020” shows that by the end of 2019, the number of mobile Internet users in China has reached 1.319 billion, accounting for 94.2% of the total population, and the growth space is very limited. Since the end of the fourth quarter of 2017, Ali’s value has reached the lowest of 8.1 billion in the fourth quarter of 2020, which is only 7.0 billion in the fourth quarter of 2017.
That is to say, the application level nourishment played by Chinese Internet enterprises is running out of use, so the big and small giants must find new increments and find more hope to survive earlier.
The current mainstream approach is to turn around and continue to add.
Turning around refers to inclining to b-end customers, which is reflected in the direction of the first generation Internet enterprises Ali and Tencent, as well as the second-generation representatives of meituan and byte hop.
If done well, this can help Internet giants get a second growth flywheel and build deeper barriers, but the difficulty is not small. Whether it is the change of thinking or the learning of professional knowledge, it is not overnight feat.
An obvious example is that 58 cities with the first mover advantage in online real estate failed to curb the rise of shell search. The fundamental reason lies in the latter’s deep understanding of the traditional industry of real estate and its implementation with Internet technology.
“Adding” is to continue to tap the needs of C-end users. From the actions of big and small giants, finance is the focus of their efforts. This year’s intensive implementation of payment products by many giants is an obvious example.
Compared with the “tough” tob, for Internet giants, financial business is actually a good means of transition in the process of transformation.
The reason is that, in addition to the above-mentioned transaction data will be more secure, the high profit attribute of financial business itself and the inherent advantages of Internet companies make this kind of business have high cost performance ratio, Tencent and Alibaba’s Zhuyu are in the front, which also allows other enterprises including didi to take less detours, and at the same time follow Alibaba’s use of retail to create its own financial ecology and enhance competition The struggle is not out of reach.
(statement: This article only represents the author’s point of view, not Sina’s position.)