2003: Starting with Foreign Trade

Chapter 851 Picking Up a Big Order

What Lao Li called a "big project" was indeed a very large project.

“Before 2014, or even the second half of 2014, a taxi operating license could almost buy a house, but everything changed starting in the second half of 2014.”

"That's true. There are already quite a few ride-hailing vehicles available."

According to data released by Didi, it has approximately 150 million ride-hailing drivers. Considering Didi's market share and the fact that most drivers accept orders from multiple platforms, the actual number of ride-hailing drivers is approximately 200 million.

However, the actual number of people working in the industry is likely much higher, with many ride-hailing drivers operating without a license.

The exact number of employees is confidential data from Didi and other ride-hailing platforms, and it is unlikely to be released in general, but the number of employees is certainly quite large.

"Currently, most of your Aion series sales probably come from B2B clients, right? Have you considered acquiring Uber as well?"

The best way to acquire Uber is through investment.

Uber and Didi have been engaged in a subsidy war for the past year, raising more than several billion US dollars in total. However, the ideal is very rich, but the reality is very harsh.

2015 was Didi's fastest year of development. After merging with Express, Didi's current market share is as high as 88.4%. It has invested billions of dollars aggressively. Uber, which is invincible in the overseas market, has not achieved the expected success in the Chinese market.

"Another foreign internet company struggling to adapt to the Chinese market. It's tough being in the Chinese-speaking world. Is Uber planning to negotiate a truce with Didi?"

"Why would you ask that? Uber hasn't shown any signs of admitting defeat yet, has it? Besides, even though its market share isn't high, it doesn't mean it's really going to lose."

"Isn't it obvious? Think about what Didi and Kuaidi did before they merged. Uber was probably planning to invest."

Li Yanhong was speechless for a moment, because according to Tan Jincheng's calculations, that was indeed the case.

Before merging with Express, Didi also conducted a large-scale financing round, and indeed, the two companies officially merged not long afterward.

"But it doesn't matter. How much they plan to raise this time, we can treat the merger as a pre-IPO investment, which is also a way to indirectly acquire Didi's shares. Your move is indeed good, making up for the market lost by Bumblebee after its acquisition."

"You little brat, you can't stand not provoking me, can you? You didn't need to say the second half of that sentence at all."

"You're overthinking it. That's not what I meant. In the second half of the capital market, it's becoming increasingly difficult to create another unicorn company. Mergers and consolidations are the mainstream in the current internet industry, and Didi and Uber are no exception."

The long-term business battles, the constant burning of money, have long since exhausted the capital, and even the company's operators are in a state of panic.

The collective plunge in Chinese concept stocks this year is actually a reflection of the attitude of capital.

“You’re right, that’s exactly right. If this continues, no one can afford to play this game except for two horses. Investment institutions are pursuing profits, and they can’t be expected to play along with any strategic planning.”

58.com merged with Ganji.com, Meituan merged with Dianping.com, Ctrip and Qunar became one family, and Jiayuan.com and Baihe.com also merged. More and more leading companies in niche markets are choosing to merge.

The end result may be that each niche market has one dominant company, while in order to avoid antitrust investigations, several companies with low market share will also survive.

"If it were other niche markets, Uber could still do quite well in China given its current market share. After all, China's orders are already the highest among all regions. Once both sides stop subsidies, they will gradually be able to achieve profitability."

"But the ride-hailing industry is a bit different. You know, besides Uber, there are other companies, and everyone has a chance to gain market share."

"Furthermore, ride-hailing data also involves data security issues. Although it may not seem like a big problem now, it may not be in the future. Therefore, Uber's domestic business will definitely be sold."

Founded in 2009, Uber has long been considered one of the most worrying startups, mainly because it burns through cash at an alarming rate.

However, its expansion speed was extremely fast, and it quickly spread all over the world after the Internet became popular.

If there are such concerns, why are venture capital firms still pouring money into it? Uber has a very strong fundraising ability; where does this money come from?
It's hard not to think about the traffic data from major cities around the world.

However, Tan Jincheng has no say in this matter and cannot do anything about it. Although he seems to have a high position now, even if he reports this matter to his superiors, he is just a nobody with little influence. You should know that Uber is not without backers in China.

If he actually reports it, he'll be the only one who suffers.

Sitting opposite him was one of Uber's biggest backers in China. After Bumblebee was acquired, Baidu began investing in Uber in December 2014, providing tremendous support in both map services and payment systems.

In addition, Baidu's total investment in Uber should exceed six hundred million US dollars.

It's fair to say that Baidu is preparing for a do-or-die battle.

Li Yanhong was able to bring Tan Jincheng on board because she considered that Tan Jincheng had a certain influence within Didi. In addition, Gaode and ByteDance also had a certain share in Didi, although they did not have decision-making power.

However, Tan Jincheng has a say in both map services and payment systems.

As one of the earliest internet companies to obtain a payment license through Lakala, Orange Payment may not have a high market share, but payment licenses are not based on market share. For example, Meituan does not have a payment license to this day.

When will the funding round begin, and how much will it typically be?

Uber China's Series A funding round was on October 9th of this year. At that time, investors led by Baidu and HNA Capital invested $1 billion in Uber China. It's only been a little over two months, and the money is almost gone.

Damn, this is really expensive.

Tan Jincheng looked shocked, and even Li, one of the BAT giants who was used to burning money, was a little embarrassed.

"The initial target is mid-January. We are already making preparations. As for the scale, we plan to raise about $20 billion this time."

"Well, the main problem is that Didi is too rich. Whether we continue to fight or merge as you mentioned, we need to have a certain amount of capital."

Yes, Didi is indeed rich. Playing on home turf and with the backing of the Shuzhi family, the merged Didi has taken a step up in both business and financing capabilities.

A month before Uber raised $10 billion, Didi raised $30 billion in one go.

Clearly, Uber's $20 billion funding round is aimed at continuing its battle with Didi. Didi's headquarters released its expected financial report this year, showing a loss of up to $10 billion, all of which was caused by the Chinese market.

In terms of subsidies, Uber is incredibly generous.

Take the latest subsidy policy as an example. In addition to a significant 30% price reduction, there are also irregular subsidies every week. At the most frenzied time, passengers could actually get a ride-hailing car for just one or two yuan.

The subsidies for drivers are also very generous. During the morning rush hour, in addition to the normal taxi fare, drivers can receive a guaranteed minimum of 50 yuan per hour, and during the evening rush hour, it is 45 yuan.

During the three-hour morning rush hour, drivers can get a guaranteed subsidy of 150 yuan just by logging on, even if they do nothing. That's absolutely outrageous.

There are also order bonuses: 100 yuan for completing 10 orders, and up to 1280 yuan for completing 90 orders. More luxurious models can get even higher bonuses. There are also star rating bonuses.

Earning 100,000 yuan a month as a ride-hailing driver? This sounds incredible 10 years from now, but it was a real possibility in 2015.

In late September, there were reports of an Uber driver in Hangzhou earning 100,000 yuan a month.

Of course, this is just an extreme example, but it is possible to earn more than 10,000 yuan a month. There are many guides and tips on the Autohome forum, and each post is very popular.

Most of those earning 100,000 yuan a month are still engaged in order-brushing, such as the car rental company run by Tan Jin'en.

Despite its small size, this guy has made a lot of money this year. His company now has 30 vehicles, and at its peak, monthly revenue could reach more than 400 million yuan.

This guy not only uses Didi and Uber, but he also uses smaller platforms like Yidao and Gaode Maps.

A makeshift operation can generate tens of millions in revenue in a year.

“Okay, I agree in principle, but I won’t be involved much. Currently, our ByteDance Engine’s investment direction is biased towards technology, and we will appropriately reduce our investment in the Internet sector.”

Li Yanhong nodded: "I understand. I can probably tell as well. This year, apart from Pinduoduo, you haven't made any major moves in the internet sector, but you've invested quite a bit in technology companies."

Bringing Tan Jincheng along isn't about needing his money, but rather leveraging his resources in basic map services, payment systems, and the automotive industry. Investing a little or a lot is considered a form of involvement.

If, as he says, Uber is acquired, then as a shareholder of both companies, he will have considerable influence.

Currently, there are several domestic capital firms that hold shares in both companies, but Li Yanhong doesn't mind bringing in another ally.

In addition, the investment in Uber has greatly boosted Aion's sales. Uber's initial business strategy in China was similar to that in the local market, focusing on a high-end market and using mostly mid-to-high-end vehicles at the time.

However, it was all for naught. This year, while engaging in a subsidy war, they also changed their business strategy, and models such as Aion and BYD Qin have already appeared.

"Uber is planning to purchase a batch of new energy vehicles to invest in its own ride-hailing service. How about you provide these vehicles?"

Tan Jincheng's agreement relieved Li Dashuai, who said half-jokingly.

"Hmm? How much do you need?"

"5000."

Damn! That's a real money pit! 5000 cars right off the bat, that's ruthless.

However, Tan Jincheng was very happy. He wanted a ruthless character like you. In fact, the longer the fight went on, the more he, as a car company boss with internet connections, would benefit.

"Awesome, you guys are ruthless. But I'll take the 5000 vehicles. Is it calculated as an investment or will you pay me directly?"

The RMB exchange rate against the US dollar has improved somewhat this year, with an average exchange rate of around 6.22 throughout the year. If converted, this would save Tan Jincheng a lot of money, but this money would still need to be paid by ByteDance to Weilai Motors.

Unless the investment entity is changed to Weilai Auto. "That's up to you, but Uber wants to give us a discount, and also to expedite the delivery date so we can have a competitive advantage."

This is exactly what Uber wants: to deliver 5000 Class A new energy vehicles as soon as possible. Currently, only Wynn and BYD have the capability to do this in China. Unlike BYD, which is still somewhat ambiguous about the ride-hailing market, Aion completely ignores these things.

According to Weilai's financial report, B-end users account for as much as 46% of the Aion series. The Aion series has always been known as the king of ride-hailing, especially the newly launched Aion Y, which is almost tailor-made for ride-hailing.

“Okay, no problem. We’ll set aside a month’s worth of capacity for you; we’ll try our best to deliver to Uber by the end of February.”

SUV sales surged by over 50%, and the growth rate of new energy vehicles in the second half of the year was even more astonishing, with the sales target of 5 units already achieved.

From January to November, Weilai sold a total of 62,900 new energy vehicles, of which the Aion series accounted for as many as 44,000. Weilai also increased its new energy production capacity to 100,000 vehicles per year.

Squeezing out 5000 cars for Uber shouldn't be a problem.

"Give me face, brother, I'll offer you a toast as a token of my appreciation."

February next year is the Spring Festival, and Weilai's orders have always been very tight. Tan Jincheng's ability to deliver 5000 Aion series vehicles to Uber by the end of February is already the fastest possible speed.

"Brother, you're too kind. Actually, I should be thanking you. This order will boost our sales next year."

Li, the handsome young man, came to him to solicit investment, but he was very sincere, and the order quotas were all in place. Obviously, this was something that Uber's senior management and shareholders had discussed in advance.

Otherwise, even if Baidu is very important to Uber, Mr. Li wouldn't have overstepped his bounds like this.

"Then remember this, brother. If you have any investments or collaborations in the future, you can also include us. We have invested a lot in technology."

"No problem, I'll definitely let you know next time I have the chance."

After a lavish banquet, the guests were all in high spirits. Tan Jincheng, slightly tipsy, got into his car and returned to Ningbo.

The Weilai ES8 sped along the highway, the scenery outside the window flashing by. Li Yaohui observed his boss in the rearview mirror. His boss's alcohol tolerance was average, so he had to be careful to see if the speed of the car would make his boss feel uncomfortable.

At this moment, Tan Jincheng was observing the scenery outside the window, a smile on his face.

"Boss, did you enjoy lunch?"

From age 35 to 45, Lai Yiu-fai drove for Tan Kam-ching for ten years. As a part-time bodyguard, he spent more time with Tan Kam-ching than with Gu Ching-ching during those ten years. Their relationship was no longer that of a traditional superior and subordinate.

To put it bluntly, if anyone wants to target Tan Jincheng, Lai Yiu-fai is an even more important target than Gu Qingqing.

"Haha, the handsome guy said he wanted me to participate in an investment, but I didn't expect to actually get a big order from him."

In addition to the 5000 Uber vehicles ordered, Li Yanhong, on behalf of Baidu's autonomous driving department, also commissioned Tan Jincheng to order 50 vehicles for autonomous driving research. These 50 vehicles were custom-made and were not cheap.

"No wonder, boss, you look so happy when you smile. You haven't been like this in the last three days."

"Is it that obvious?"

"I don't know, that's just how I feel."

During the three-day Internet Conference, Lai Yiu-fai, who was with Tan Kam-ching, always felt that his boss was somewhat uninterested. There were many interviews, but it seemed that only at this moment did he show a genuine smile.

"Maybe so. I feel that the internet industry is too superficial these days, and I feel a bit out of place compared to last year."

Although there was a lot of noise last year, with Lao Ma criticizing everyone and not just him being pretentious, everyone's spirits seemed higher than this year. However, Tan Jincheng, who attended the meeting this year, felt that everything seemed to have changed.

The memorable scene between Zhou Hongyi and Lei Jun is perhaps a microcosm of this year's conference.

He's a celebrity, after all. It's a bit unreasonable for him to fall asleep during a speech.

"If you don't fit in, then don't bother. You're a big shot in the automotive industry, why would you want to be a nobody in the internet industry, right?"

"Ha, you're right. Let's see next year. If nothing comes up, I won't join in the fun."

"The level of excitement at our auto shows is no less than that of the Internet Conference."

Tan Jincheng nodded but did not answer Lai Yiu-fai's question, and Lai Yiu-fai also refrained from saying anything further.

After a while, Tan Jincheng said, "Ten years have passed in the blink of an eye. Time really flies. Did Brother Li think about your life now 10 years ago?"

Having grown into a powerful figure in 10 years, even if Tan Jincheng tries to appear approachable, there are very few people in the company who can chat with him like that now.

Zhang Xupeng counts as one, Li Yaohui counts as one, and Zhao Xinyi barely counts as half.

Lai Yiu-fai shook his head: "No, to be honest, I was in a daze after I came back from the army. I couldn't find any good jobs except as a security guard. Back then, the salary you offered was high, so I agreed without thinking."

As he spoke, a smile appeared on Lai Yiu-fai's face: "To be honest, back then I didn't think I could work for long. I thought it would be good if I could work for a year and then I could save some money."

As a driver, he went out with his boss every day, and his boss covered almost all his food and drink expenses. At that time, Lai Yiu-fai was quite frugal and was able to save almost all of his monthly salary.

"Yes, who would have thought that I would have Brother Li as my driver? It's my good fortune."

Tan Jincheng is quite sentimental and generous towards those who started the business with him, but that doesn't mean he doesn't consider interests.

The fact that he hasn't changed positions in such an important role for ten years must be because Lai Yiu-fai is a person of good character; it's no exaggeration to say that he's lucky.

"Boss, you flatter me. Besides, I've earned quite a bit over the years, and my parents, wife, and children are all living a good life. Isn't all of this thanks to you, boss?"

Lai Yiu-fai understood what Tan Kam-ching meant. Over the past ten years, countless people had tried to use him to smooth things over with Tan Kam-ching, including some local government officials.

Occasionally, he would frankly tell his boss the truth while also introducing him to someone, but most of the time he maintained the professional ethics of a driver and refused.

"That's what you deserve. Speaking of which, you should be worth tens of millions by now, right? Tell me how much money you have, I'm a little curious."

"Hehe, boss, you underestimate me too much. Having tens of millions in assets would be embarrassing for you."

"Hmm? How much is your annual income now?"

Tan Jincheng had only been chatting casually to pass the time during his journey, but now he was genuinely curious: was the man really worth more than ten million?
“My wife’s income can fully cover our household expenses. I don’t spend much money when I’m with you, so I save all my salary.”

"Didn't you say a long time ago that buying some houses or stocks would appreciate a lot over the years?"

Tan Jincheng was speechless: "Wow, you've got a good head for business."

"That is."

Lai Yiu-fai was a little smug. Needless to say, the property value had increased. He knew more about stock investment from Tan Kam-ching, so most of the stocks he bought were heavily invested in ByteDance.

Stocks like Apple, Tencent, Moutai, and bank stocks are stable assets, and he doesn't pay much attention to them. He just invests a fixed amount every year and leaves it there.

In addition, whether it was Orange Technology, Flash Technology, or Weilai going public, the boss gave him a portion of the stock. Orange Technology's value increased tenfold, while Flash Technology and Weilai's shares increased more than fivefold.

With fixed assets and investment appreciation, Lai Yiu-fai is undoubtedly a hidden tycoon.

He really had no need to sacrifice Tan Jincheng's interests to benefit himself.

"That's impressive. The dividends from these assets alone would amount to a considerable sum in a year. That's good."

Tan Jincheng didn't find anything wrong with Lai Yiu-fai buying these stocks through his sources; some people even post their real-time trading information on Weibo's stock forum.

On the contrary, he was quite happy, as he hoped that those around him would grow together with him.

If Lai Yiu-fai is still living on a salary in this position ten years from now, then he will really have a headache.

"Boss, you have to let me know if there are any risks, so I can suffer less loss."

Tan Jincheng wasn't angry, and Lai Yiu-fai was much bolder.

"Take it for now, but there's one thing to note: don't buy our own company's stock casually, but you can buy other companies' stock as you like."

"I understand."

The journey of about three hours passed quickly, filled with laughter and conversation. Upon returning to Beicang, Tan Jincheng didn't rush home but went straight to the Weilai headquarters. The 5000 Aion series vehicles were scheduled for delivery at the end of February next year, and Tan Jincheng needed to go and explain things to Zhang Yong and Zhang Li.

"Boss, you've really put me in a difficult position."

Zhang Li was both happy and troubled. He was happy that his boss could bring back a big order from an event, but he was troubled because the time was too tight.

If it were the first half of the year, these 5000 vehicles wouldn't be a problem, but this is December, and a sudden large order will directly affect the formulation of next year's production capacity plan.

"Hehe, take care, we'll give you two extra days off during the Spring Festival so you can go home and reunite with Boss Wang."

(End of this chapter)