Deconstructing “pinduoduo” in the car Hailing industry: the business logic and value space behind huaxiaozhu

Sign in and get tickets, passengers and drivers make new money. Zunyi, Guizhou, and Linyi, Shandong, have begun to test their operations There are too many similar paths with pinduoduo in the new online car Hailing brand “huaxiaozhu”, which was officially announced by the foreign government a few days ago.

in the broader third and fourth line and even the vast rural market, the taxi demand of users also exists, while the market penetration of online car Hailing needs to be improved. Even in the first and second tier cities, there is a large number of unmet taxi demand. Hua Xiaozhu, who has devoted his energy to these markets, is trying to inject new growth vitality into online car hailing and find new value space for itself.

“new arrival, please take care of it On July 22, Hua Xiaozhu took a taxi and officially announced it on Weibo. According to the official announcement, this is a new brand launched by Didi.

in fact, huaxiaozhu has been testing and operating in Zunyi, Guizhou and Linyi, Shandong Province since March and April this year, and users find it very cheap to take a taxi. Although there are similarities between Huazhu and didi in App Design, the difference between them is more obvious.

the game of small profits and quick sales, with preferential and low prices, is the core logic for pinduoduo to join the first camp of e-commerce, which has been used for reference by many Internet enterprises. Today, Hua Xiaozhu even embodies this idea in its own brand logo: as the name shows, the logo of Huazhu is a piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy is a piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy piggy.

another typical game of pinduoduo, namely social fission and cash withdrawal, is also reflected in huaduo. Huaxiaozhu launched “daily cash collection” activity, users can get cash by receiving red packets shared by friends.

this is the same as pinduoduo’s “help me” mechanism. At the same time, on a certain social platform, there are user voices like “seeking mutual help” and “whether there is a mutual aid group” similar to pinduoduo. According to a little bit of Finance and economics, some users have drawn 30 or 50 new users in order to withdraw cash.

like subsidies, social fission is also implemented at the driver’s end. For this reason, Hua Xiaozhu has put forward the slogan of “make money if you can’t get out of the car”, encourage drivers to split and innovate, and realize word-of-mouth communication within the circle: drivers invite passengers to scan the code successfully, and even can get cash back without completing the order.

“when we took a taxi in Chengdu today, the driver took the initiative to invite the installation of flower piglets and said there was a discount,” said a passenger. Compared with pinduoduo’s simple user fission, huaxiaozhu has opened a new channel for users and drivers.

of course, while actively expanding a series of “fancy” playing methods, the bottom line of safety has not been relaxed. According to the introduction, the safety standards of huaxiaozhu and didi are only open to existing didi registered vehicles and drivers, and measures such as face recognition, whole process recording, journey sharing, emergency help and alarm have been taken.

while enjoying the technology and safety system of Didi, Huazhu also acted as the “experimental field” and became the pioneer of Didi’s technology and product testing. For example, it is currently developing a reverse scoring mechanism for drivers on passengers.

in 2020, after two years of calm, Didi will finally speed up its own pace. According to media reports, in March this year, Cheng Wei, chairman and chief executive officer of didi travel, announced in his internal letter the goal of “0188” for the next three years, that is, to achieve zero major safety accidents within three years, to provide more than 100 million services per day, to provide more than 8% of the total domestic travel penetration rate, and to exceed 800 million global service users.

the growth of users and orders, besides security, has also become the focus of current Didi. However, compared with the current tens of millions of daily orders, 3% penetration rate, 340 million Mau and other data, “0188” is far from a “small target”.

behind the various “spell” methods of huapiggy, Didi is targeting the incremental market for growth, including the vast sinking market and the unmet travel demand of other markets before.

in the field of Internet, this is not a new topic. In recent years, e-commerce, video, information, finance and other fields have started a journey of sinking. Even Taobao and Jingdong, which are fighting with pinduoduo, are speeding up their exploration and sinking. Among them, Ali pays attention to the cost-effectiveness once again. Jingdong launched Jingdong’s joint purchase and wholly-owned acquisition of five-star electric appliances to seize the sinking market share.

the common problem in these areas is that user growth needs to have a new curve. In the Internet field, user and user growth is the basis of all possibilities. With the Internet entering the second half, traffic growth in these areas generally slows down.

this situation also exists in the field of online car Hailing. According to data from CNNIC, China’s online car Hailing market began to grow rapidly in 2015, with users growing rapidly to 343 million in the three years from 2015 to 2017; the growth of users slowed down to 389 million in 2018; and further slowed down to 404 million in 2019. Although the user utilization rate increased during the period, overall, the growth rate of online car Hailing market users is gradually slowing down.

how to seek growth, especially under the existing market conditions, has become the primary problem for Didi. There is no doubt that the sinking market has become the first choice – whether it is the number of users that can be explored, or the mature playing method, which makes didi begin to face up to this market that is yet to be developed.

according to sun naiyue, a travel industry analyst at Yiguan analysis, among the users of didi travel, Shouqi car hailing and Caocao travel, the proportion of users in the third tier cities and below is 16%, 5% and 5%, respectively. It can be seen that the online car Hailing market still has more development space in the sinking market, which is also the reason why didi launched the new brand of huaxiaozhu taxi.

“today, we set out again, which is different from the previous years. We have stronger safety awareness!” Cheng Wei said in June, the eighth anniversary of Didi.

after a little sorting out, Didi has owned many categories in the field of travel, such as bicycles, buses, carpools, special offers, express trains, free rides, etc., and has formed a multi brand matrix of “green orange bicycle”, “didi travel”, “Li orange special car” and “green vegetable carpool”.

“didi travel hopes to provide more users with safe, affordable and convenient mobile travel services through the multi brand strategy of huaxiaozhu, Didi, Licheng, Qingju and green vegetable carpool.” Hua Xiaozhu said.

in fact, for Didi, Didi carpool was renamed “green vegetable carpool” and huaxiaozhu was officially launched for official publicity. The emergence of the first and second name is not only for mutual correspondence, but also for the establishment of a “firewall” mechanism to ensure the innovation, development and vitality of various brands.

all these brands and business lines of didi are based on the goal of “travel” and the premise of “sharing”. The significance of the launch of huaxiaozhu is not only to supplement Didi’s multi brand matrix at the present stage, but more importantly, it has broken the ceiling of the first and second tier cities in terms of serving the crowd, and is exploring the growth boundary in a broader market on its best track.

the emergence of Huazhu can be said to be just to solve such problems. Didi is further focusing on the achievements in the field of online car hailing, namely the sinking strategy. Through the penetration of low-end markets, Didi has completed the re splitting of the market and customer groups, and realized more refined sharing and allocation of social resources.

different from the mode in which Didi’s order price is determined by journey, time and other factors, huapiggy’s mode is “buy it now”. After the user places the order, huapiggy will display the whole price and need to pay.

this is specially designed to achieve a more optimized allocation of resources. Moreover, huaxiaozhu is a semi assigned mode, and drivers can freely choose orders. In this way, the driver’s demand is put forward, and the priority and dominance of the driver’s orders are more emphasized.

Based on this, different from the primary and secondary market, high-frequency travel and various small tasks are easier to realize and more attractive for users and drivers in the sinking market.

in this way, Hua Xiaozhu virtually connects drivers and passengers in the market segments, and makes more accurate matching and docking between b-end and C-end users, thus completing more efficient and active social resource sharing and allocation. At the same time, through more extensive resource allocation in the sinking market, Didi will connect more drivers and more users.

“after years of development, the Internet platform economy has become a new way of organizing productivity, creating a large number of jobs and playing an increasingly important role as a reservoir and stabilizer of employment,” Cheng Wei wrote recently. As for Didi, it is reported that there are more than 6 million related jobs in the upstream and downstream of the industrial chain, bringing about 18.26 million employment opportunities. Among them, 21% of online car Hailing drivers are the only source of income for their families.

such “employment reservoir and stabilizer” is undoubtedly equally important in the sinking market. The low-end market that Hua Xiaozhu aims at is different from the busy state of office workers in the first and second tier cities. Many car owners have more leisure and spare time. Huaxiaozhu can provide these people with more choices to earn extra income and fill in the employment gap.

Chen Litang, an analyst at the e-commerce research center, believes that the Ministry of communications also encourages the development of online car hailing in small cities, which will bring great opportunities for online car Hailing. The recent executive meeting of the State Council has also clearly put forward that “measures to support multi-channel flexible employment shall be determined to promote the increase of employment and income of residents.” Among them, it also calls for encouraging platforms in the field of mobile travel to create more flexible jobs.

didi is regaining its growth: from March, when didi was launched as a errand business to providing goods on behalf of customers, to June, when didi was launched in Chengdu and Hangzhou, and in July, guanxuan Huahua piggy showed this.

among them, sinking the market has become a key link for didi to regain its growth. Many Kwai Fu and many other cases show that the potential of sinking market is large enough to even hatch a bit more.

on the basis of doing a good job in “safety”, starting from sinking the market, opening up the unmet car demand in the whole travel field, doing incremental addition, Didi’s expansion is far from stopping.

Author: zmhuaxia