With a loss of 50 billion in 7 years, Didi, which was "burning money", finally made a profit. Why is the market generally not optimistic about it?

The concept of "online ride-hailing" has been popular in China for many years. From the initial "burning money" to seize the market, to today's "Didi" being the dominant one, the capital involved is incredible. It’s not dangerous. Recently, Didi President Liu Qing said in an interview: Didi is officially profitable! Whether you believe it or not, I don’t believe it anyway. Why? Because Didi has not made a profit for 7 consecutive years and even lost 50 billion yuan!

For this reason, I decided to use Didi as the "target" and talk in detail about whether "online ride-hailing" is a bubble or cotton!

First, the “money-burning war” that caused a sensation in the business world

Regarding Didi, the most famous thing is the “money-burning war”. This war is still talked about today It makes me shudder because it is so famous. It can almost be said to be the most famous resource battle in the century-old business history. Let’s briefly review. When Didi was established in 2012, two other online ride-hailing companies emerged, namely Kuaidi and Uber. In order to seize the online ride-hailing market, these three companies launched an unprecedented subsidy war.

In this battle, Kuaishou was defeated first. After it was successfully acquired by Didi, headed by Ma Huateng, the online ride-hailing market became a competition between "two horses". Didi Behind Didi is Tencent, headed by Ma Huateng, while Uber is backed by Alibaba, headed by Jack Ma.

Second, "burning" 100 million in one day and "burning" for 10 consecutive days

Two big guys and two companies are competing for each other in the capital market. They want to seize the market by subsidizing the consumer market. According to Wu Xiaobo's book "Thirty Years of Turmoil", when the competition for resources was at its peak, the two companies had to subsidize 100 million yuan a day. What is the concept of 100 million yuan? In the words of teacher Wu Xiaobo, "Even if it's all burned, it will take several days and nights."

Money was "burned" for more than ten days, benefiting the consumer market, but there was no change in the capital market. At this time, the two big bosses realized that it could no longer be like this, so they had an unexpected battle. The too-friendly peace talks ended with Didi's acquisition of Uber, which ultimately led to the cooperation of four "capital giants": Liu Chuanzhi, Ma Huateng, Jack Ma, and the man behind it, Masayoshi Son.

Third, after the merger, Didi lost nearly 50 billion in 7 years

In February 2019, Didi founder Cheng Wei stated in an internal letter that from 2012 to 2018 , Didi has never made a profit, losing 39 billion yuan in 6 years. According to relevant data, as of 2019, Didi *** has accumulated losses of more than 50 billion yuan in these 7 years, of which it lost nearly 11 billion yuan in 2018 yuan renminbi.

Everyone wants to know: What is going on? Isn’t it said that online ride-hailing is a “big cake”? Why did it lose 50 billion yuan in 7 years? What does Didi want to do? Don’t worry, I will analyze them one by one below.

Fourth, where does Didi’s money come from?

First answer the first question, where does Didi’s money come from? Since it has not been listed on the market, according to incomplete statistics, Didi has received 18 rounds of financing since its establishment, with a cumulative amount of US$21 billion. If it were not for the continuous "blood transfusion" of external "financiers", Didi would have been Closed.

Fifth, how does Didi make money?

Secondly, to answer the second question, how does Didi make money? For Didi, which has suffered huge losses all year round, there is only one way to make online ride-hailing profitable, and that is to significantly increase revenue. However, if you think about it with your toes, if it is so easy to increase revenue, Didi will not need it. I have lost so much money in 7 years. In fact, Didi's biggest profit point is in ride-hailing and ride-sharing. You know the results, so this is the main reason why Didi has suffered losses all year round and has been unable to recover.

So the question before consumers at this time is very simple: Does Didi still have a future?

Sixth, what is the future of Didi?

To answer the last question, does Didi still have a future? Where is the future? In fact, for Didi, what needs to be solved most at present is not the funding problem, but the issue of whether it can find a core sustainable profit model (don’t think about free rides). Although for now, Didi’s financial and insurance businesses are We are accelerating the layout, but as the old saying goes, "water from afar cannot quench the thirst of the near." If you want to truly "counterattack", in addition to relying on the four major "funders" behind you, you still have to find your core competitiveness!

In summary

To a certain extent, Didi is facing the same dilemma as LeTV and Luckin, unable to escape from the "financing, subsidies, refinancing, and re-subsidisation" "The endless cycle, I even doubt: Is this "money-burning" subsidy policy that seems to "benefit the country and the people" really not suitable for China? And you? Do you think it's suitable?