Prior to this, the early domestic Internet pattern was Netease, Sohu and Sina!
Later, the BAT Big Three have been firmly entrenched.
They are regarded as three insurmountable mountains for Internet startups.
With the advent of the mobile Internet era, the rise of some unicorns has brought many new enterprises to people. These three small giants represented by TMD have attracted many people's attention.
However, many people are puzzled by this. Judging from the corporate financial reports given in recent years, both Didi and Meituan are in a state of sustained losses. After all, they used to rely on subsidies to gain market share, especially Didi 2065.438+08 lost 65.438+009 billion, but as the founders of the enterprise, they are very rich. Why?
As both companies were founded in 20 12 mobile internet tide, Didi and Meituan are young enterprises established only eight years ago, but they have developed very rapidly in recent years.
As the dominant online car rental company in China, Didi has successfully merged Kuaidi Taxi and Uber China, occupying more than half of the domestic market share. Going out to take a taxi has become the choice of most people. In 2020, the total order volume of Didi Chuxing on Tanabata exceeded 50 million, which is not small.
Meituan started by imitating foreign online shopping websites and survived the Thousand Regiments War. With the help of the efforts of the US group to take out food, it was successfully listed, and the wine travel business also flourished. The number of nights between hotels once exceeded that of OTA giant Ctrip.
As the founder of Meituan, Wang Xing's current market value has exceeded $200 billion after Meituan went public, and his value has doubled. Although Didi has not yet been listed, its valuation has exceeded 50 billion US dollars. As the boss of Didi, Cheng Wei's wealth cannot be underestimated. Even if Didi loses 654.38+009 billion yuan, Cheng Wei and Wang Xing's worth is still on Forbes' rich list.
Here, many users will ask after seeing it. Is it so rich because both Meituan and Didi are making money?
In fact, Meituan suffered a loss of 201154 billion. Although104.6 billion was due to the realization of the fair value of preferred shares, it was not an actual business loss, but the business loss of Meituan was still as high as 100 billion.
Take Didi as an example. Although it has not been listed yet, there is no need to make public financial reports. However, due to the concern of the capital market, some financial data are often published. 20 18 year loss 109 billion!
It is also because of the overall adjustment of the internal organizational structure of the network car accident. In the six-year financial report recently given by Didi, Didi * * * lost more than 50 billion, which shows how much Didi has lost in recent years.
Meituan has also suffered losses year after year. Not only did it invest a lot of subsidies in take-away, but it also had to invest more money in recent years due to the exploration of emerging businesses such as taxis, which also caused the US Mission to lose nearly 40 billion last year.
Judging from the financial reports of these two companies in recent years, Didi and Meituan are both losing money.
So why do these two companies lose money every year, and why are the bosses so rich?
In fact, this is the current development model of the Internet, because to achieve the scale effect, there will be fierce competition between companies, and there is no way to avoid burning a lot of money.
As ordinary users, voting with their feet will naturally choose the platform and software with the largest subsidy.
Because Didi and Meituan chose this operation mode from the beginning, they inevitably began to lose money. In order to bring down competitors, and finally realize the scale effect and profit.
In recent years, new competitors have emerged in the take-away industry and the online car industry!
Alibaba spent nearly 10 billion yuan to acquire a local life company composed of Hungry, directly targeting the US Mission.
In my opinion, at present, the take-away industry and the online car service industry have not completely stabilized. The news that SF launched take-away service in May once became a hot spot, especially in the field of online car service. At present, there are many competitors such as Hellobike and Cao Cao Travel, and they are supported by Alibaba and Geely Group respectively.
Meituan and a number of travel companies also want to take a share from Didi, so that the competitiveness of Didi and Meituan has not declined at all, so that they are still investing money from the beginning of their establishment. Of course, many industries on the Internet are also in this kind of competition, depending on who can't survive, those who stay can enjoy success.
Many people in the industry also predict that the online car ride will usher in a more intense year, so Didi also quickly reorganized its internal organizational structure to face the next competition and challenges.
Today, Meituan has made a profit, and Didi is also rumored to be preparing for listing. The plan of 0 188 has been put forward, and the daily order will reach 1 100 million in three years.
How to treat the above situation?