Chapter 291 Debate
It is almost a consensus that all Internet industries burn money in the early stages.
Only after spending money to build up traffic can you find ways to monetize and make a profit.
The Internet is a place where the Matthew effect is extremely strong. The top players are almost in a winner-takes-all situation, and the rest can only get scraps or enter the lower-tier markets.
In fact, a very important factor is that it is difficult to identify the Internet industry as "dumping", so such brutal and violent means can be adopted.
Why would any country or market have anti-dumping measures and impose fines at every turn?
That is because with sufficient capital, other competitors can be easily defeated by means of dumping.
Keep making your competitors lose money and go bankrupt.
After completing the monopoly, whether to acquire or dominate the market will be up to you, and the lost funds can be returned with interest!
The initial concessions are just to get more.
For goods in the physical industry, dumping is easy to quantify and there are various rules and regulations.
But on the Internet, there is no suitable identification method, and we can only watch the top players defeat all opponents with their financial advantages, and then start to reap the benefits in an ugly way.
Because of this, except for those in the world who make a living by relying on technology that cannot be replicated, burning money is a necessary experience in the early stages of some emerging Internet industries, so they almost all choose crazy financing in the early stages.
Many things may happen during the financing process, such as the founder’s equity being diluted and being kicked out.
However, Lin Xiang, the founder of Kangaroo Takeaway, is very capable. It’s not that he is naturally capable, but his father is a wealthy cement tycoon, and he himself has the capital to trial and error.
After nine failed entrepreneurial ventures, I relied on the accumulated experience to achieve today’s initial success.
After successfully tying up Ahri's chariot, the mode of burning money and expanding began.
He was very clear about every step, how to operate, how to unfold, and how to spend money.
There is also no saving in buying traffic on Yaoxin and TT.
In fact, Lin Xiang was inclined to cooperate with Penguin at the beginning, and after World Company emerged, he also wanted to cooperate with World Company.
But the penguin was scared by the warning and just lay down and watched the show, while the World Company wanted to have everything to itself, so it had no choice but to choose Ahri, who was the first one to fall in love with it, and reluctantly fell into Ahri's arms.
After the World Company showed its intention to enter the takeout business, he never stopped paying attention and any developments were reported to him as soon as possible!
But now, he suddenly found that World Company was a little confusing.
First of all, in terms of operating costs, a special rider labor contract was given without any hesitation!
He was willing to buy social security, but this blow made his scalp tingle.
I think that the world's companies want to use their power to suppress others and use their financial advantages to mindlessly crush me.
People in the Internet industry can tell how rich the world’s companies are with just a little calculation!
It’s impossible to beat burning money!
I thought that the world company was about to deal a heavy blow in terms of subsidies, and directly crush Kangaroo Takeaway with its money.
But the subsidy for their entry activities surprised Lin Xiang greatly.
Strange, is this all you give?
Admittedly, because of the TT, it is completely fine for merchants to apply for one at the same time, but if they have to make a choice , they will definitely prefer Kangaroo Takeaway.
It’s simple, just spend money!
"Although there are subsidies for riders, they are not as strong as ours, this..."
Lin Xiang was really confused.
Kangaroo relies on subsidies that are enough for riders to earn more during the money-burning period than what they earn in the rest of the world!
This can be maintained in the short term.
"I really don't know what's going on in your operations! They dare to sign labor contracts, but they are reluctant to spend money on these things. Haha, labor contracts are a time bomb in the long run. It's troublesome to dismiss them, and there are also various insurance costs."
Lin Xiang is now burning money like crazy, but when the market approaches saturation and it becomes difficult to expand, the money-burning behavior will inevitably stop, and then it will enter a double-edged revenue model.
By then, the money spent now can be earned back many times over!
At that time, those riders will not become a burden either. If they can do the job, they will stay. If they can’t, they will leave!
On the other hand, in this part of the world, if a rider gets injured while delivering food and asks for leave, even if the insurance compensation has been paid, the society still has to accept the rider's request for leave and still bear the burden of paying the basic salary.
In the long run, this model is definitely more profitable.
Even if you want, you can use subsidies to get merchants to lower the prices of their takeout products, and immediately let consumers vote with their feet!
However, after thinking about it, Lin Xiang put it away.
To be honest, I dare not.
It's not just a question of the company's status as a global company, but also the pressure of the other party holding funds!
He wants to avoid a price war with the other party, so now it is enough to rely on subsidies to merchants and riders, which is enough to stabilize his basic base!
…
On the other side, Mumu also breathed a sigh of relief when he got a taxi.
Mu Wan comes from a wealthy family and is the daughter of the head of Mu Group, the world's largest personal computer assembly company.
Mumu Taxi also has great ambitions and is destined to ring the bell on Nasdaq.
However, no matter how powerful her background is, and no matter whether she has clung to Ahri's thigh, she is still under tremendous pressure facing the World Company with an indestructible golden body.
Even her father would probably have to avoid her.
"Heh~, after all, I'm just doing scientific research, I'm too soft-hearted."
Mu Wan heaved a sigh of relief, but her face was also full of sarcasm. She admitted that these people were geniuses and had good brains, but all their minds were focused on academics and research, so naturally they didn't have more energy to focus on other things.
Human energy is limited!
Her father had used a little trick to successfully squeeze out the technological competitors from the group and seize power.
This has always been admired by her.
And today, I have to rely on my own means and various advantages to suppress the other person.
"Some people are just stupid. As long as they don't develop high-tech products and don't touch their interests, they can earn money safely as OEMs. But they are ignorant of the sky and touch their bottom line. This guy may have his own romantic ideas. It's really boring. He can't even find a master and wastes his talent in vain..."
…
Let’s not talk about the ideas of the two competing products, Kangaroo Takeaway and Mumu Taxi.
Various merchants and delivery riders also began to complain.
"World Company is too stingy and not generous at all."
"I am a rider for Kangaroo. Originally, I was very happy to see World Food Company also enter this industry, especially when I saw that their full-time riders can buy social insurance. I was even tempted to change jobs. But our station manager took the subsidy and calculated the accounts with us. The income of TT Takeaway riders is not as high as ours. Although the unit price is similar, the subsidy is too little. It is really dirty to use these subsidies that originally belong to us to pay social insurance. It sounds good on the reputation."
"I am also a kangaroo rider. I have been riding for a while. The income is really good. If I work hard, I can earn more than 10,000 yuan a month."
"Is this true? Can you make so much money delivering food?"
"Of course, just work hard. Kangaroo Takeaway has high subsidies and rewards."
"I would rather choose not to have social security and get more money."
"Stupid, you have to pay part of your social security, and the company will also make up part of it. It's different."
"But we didn't get that much, did we?"
"Forget it, you'll know when you encounter something. Hey, listen to my advice."
“…”
Currently, most businesses are complaining about the world's companies. If you don't work together, there will be no profit.
But on the rider's side, the two sides were fighting back and forth.
The riders from the World Company feel safe and stable, while the riders from Kangaroo Delivery feel that they get more money and it is better.
"As an Internet practitioner, I really want to remind the delivery guys that the Internet industry will burn money in the early stages, but it won't burn money forever. It will eventually be profitable, so you have to take a long-term view."
An unknown Internet practitioner with a verified Weibo account made this comment.
The result caused a lot of ridicule and criticism.
"Have you collected the money? How much did you collect? Let's make money together."
"Please introduce the channel."
"Laugh, the money in hand is the most real thing, why should I care if it's just a waste of money?"
"Kangaroo Takeaway is willing to spend money. World Company doesn't know what to do with so much money. Are they stupid?"
"Shut up! You can say Kangaroo Takeaway is willing to spend money, but you can't attack World Corporation!"
"You idiot, do you know how many patients the world company supports every year?"
“…”
Generally speaking, it is normal for a top large enterprise to be attacked, whether it is Penguin, Ali or anything else.
But World Company is different, its reputation is really good.
Even if there is such a war of words, it will definitely not involve me, because there will be tap water to help me resist.
The identity of the little V who was certified on Weibo was also revealed at this time. He was a middle-level manager of Penguin, who was specifically responsible for investment.
They are really professionals!
"I'm just saying, whether you want to believe it or not, it has nothing to do with our company. I just want to remind you that businessmen want to make money, so you should take a long-term view.
"At least as an industry insider, seeing that World actually uses a labor contract, most of us can only say we are convinced. This is the kind of pressure that only industry insiders understand. World Company is indeed a world company."
But not long after, another high-ranking V of Penguin circled him.
"Are you thinking of changing jobs?"
Then the little V quickly deleted the post and ran away, leaving only a "well-behaved" emoticon.
He was just speaking from his heart, but now that his own job is involved, of course he has to make the decision with his feet.
Penguin didn't get involved in this matter originally, so now it's just a matter of watching the show...
However, after the small disturbance caused by him, a lawyer blogger immediately posted a related explanation video on TT
"I understand what the friend who deleted the post meant. Only labor relations are eligible for arbitration..."
