In the online car-hailing money-burning war, Toutiao consumed US$400 million in its early one month. Tengxun and Alibaba, as competitors, were not much better, and even spent more, because online, Didi has the traffic of Toutiao and offline promotion of Today's Preferred Promotion, which is slightly lower than the cost.

For Tengxun, core business social interaction has been severely challenged. Although this factor will not affect Tengxun's income for the time being, it will be a serious blow to market confidence. This has also caused the capital market to be unfavorable to Tengxun, which naturally affects Tengxun's capital reversal ability.

Although Alibaba has not been directly attacked by Toutiao, it has been a heartache for Alibaba. In order to obtain traffic, Alibaba has made continuous moves in the past two years and acquired companies such as Gaode, Youku, Xiami, Qiongyou.com, etc., and its investment is not weak at all, including Sina Weibo, Cultural Communication Group, Hang Seng Electronics, etc., each time ranging from hundreds of millions to billions of dollars. Because it did not seize the ace of finance, Alibaba also encountered problems similar to Tengxun.

Burning money is not scary, but when burning money without any results, no matter how rich you have, you cannot continue to struggle like this. So Ma Yun took advantage of Weibo to invite Zhou Yujie and Ma Huateng from a distance.

"Mr. Ma, I have been hiding for a long time." Zhou Yujie naturally had to give him enough face when he saw Ma Huateng for the first time.

"Mr. Zhou, each other." Ma Huateng also said with a smile, not treating the other party as a competitor at all.

"You haven't met before?" Ma Yun asked curiously.

"No."

The two answered almost at the same time that although Toutiao and Tengxun had conflicts in several fields, both Xiao Ma Ge and Zhou Yujie were those who were relatively low-key and rarely participated in so-called large-scale conferences. The competition between them involved the core lifeline, and no one would do anything or work, so naturally they never had the chance to meet.

Ma Yun didn't care and said, "Two, you know why everyone has come to me. The online car-hailing market has been burning too much money. Let the three of us discuss what to do about this matter?"

The cultivation of user habits is actually similar to an X-square curve. The initial effect is very good. A little money can attract a large number of users. However, as time goes by, the cost of attracting traffic will become higher and higher, whether it is online car-hailing, group buying or takeaway.

"What do you think by Mr. Zhou?" Ma Huateng did not answer and threw the ball to Zhou Yujie.

Zhou Yujie smiled and said, "In the areas where we burn money, user habits have basically been formed, and it doesn't make much sense to burn it anymore. It's better for all three of us to take a step back. It's okay to burn money, but we have to go to those third-tier cities and first-tier cities to maintain normal operating models, and we can appropriately launch a preferential model for attracting newcomers."

Ma Huateng looked at Zhou Yujie and said, "Mr. Zhou's idea is good, but this seems not fair to us, right? With today's preferred existence, DiDi can quickly deploy third-tier cities."

Toutiao has its own advantages for Alibaba and Tengxun. It compares online traffic with Alibaba and offline promotion with Tengxun. The only weakness is that its funds are weaker than Alibaba Tengxun.

When money is too ruthless, Toutiao and Didi can only be trapped in order to protect the market in first- and second-tier cities and cannot move their energy and funds to the third-tier cities. However, if the money burns over and there is no pressure on funds, then with the help of today's preferred food delivery teams that have already spread across a large number of third-tier cities, Didi's expansion will be faster.

Ma Yun didn't say anything, and he agreed with this view. Although Alibaba invested in Meituan and was hungry, these two companies did not belong to Alibaba, and it was impossible to fully implement the development strategy of cooperating with Alibaba, especially when Kuaidi did not belong to Alibaba.

Ele.me is a little more obedient, but its market share is small and its coverage is only a few provinces, so it can provide limited help. Although Meituan is no less than today's preferred food delivery field, it is also because it is too large and may not be willing to fully cooperate with Alibaba's other requirements.

The online ride-hailing market is developing rapidly. Once the cooperation is not done well and the plan is not implemented, it will be easily pulled down by the other party in a few months, and then there will be no chance of turning around. Unless you burn more money, you will fall into the previous dilemma.

Zhou Yujie smiled and said, "Fairy is just something to say. There is no such thing in this world. Today's Selection is an advantage that has only developed to this day. Of course, DiDi will make full use of it. Isn't the software the two of them the same? The current headline video is not as good as Youku and Tengxun videos."

With Didi's growth, its equity structure has naturally attracted the attention of many people, especially investment banks, who want to invest in this potential stock.

Although Didi's overseas holding structure is complex, its fundamental purpose is to prevent a small number of people from investigating. When it really attracts attention, it cannot be concealed by those large venture capital funds. Until recently, everyone learned that Didi is a direct subsidiary of Toutiao, and the so-called Toutiao investments before were just a trick.

Only some senior executives including Teng Xun, Alibaba, and Baidu learned that Zhou Yujie had planned the online car-hailing industry two years ago. At the same time, in order to avoid the industry's attention, hidden measures were taken, and the effect was naturally very good. Didi has become one of the three giants in online car-hailing in China. Now that the news has been exposed, Toutiao has been even more scruples and has provided greater support.

Although Alibaba and Tengxun also want to attack Toutiao's payment business and are optimistic about the online car-hailing market, Kuaidi and Yaoyaocha are another company, and there are too many disputes in cooperation. Even if the strategic purpose is the same, it is difficult to work together.

Just like the money-burning war, the fundamental purpose of Alibaba and Tengxun is to gain the habit of paying users, but after burning in the early stage, the strategic purpose is almost done. Therefore, the investment in the later stage will definitely require more equity returns, which will naturally arouse the vigilance of entrepreneurial investors.

If the money-burning war is over, DiDi can directly use Toutiao's funds, and its advantages will naturally be greater. However, the three BAT giants also have their own various industries, so Zhou Yujie naturally cannot give in.

Ma Yun said: "Actually, Alibaba is also negotiating with KuaiDi's team and preparing for a full acquisition."

Ma Huateng also said: "Teng Xun will have similar plans."

"That's fine. In recent times, we will not burn money. When you successfully trade, let's see what's going on?" Zhou Yujie said indifferently.

Zhou Yujie didn't care about the so-called merger at all. Although it was helped by the giants behind it, Kuaidi and Yaoyaocha could grow into one of the overlords of online car-hailing. Their team's confidence and execution ability in entrepreneurship are definitely top-notch. It is undoubtedly difficult for them to sell companies that already have such a large scale, unless Didi is more successful in the online car-hailing field, which makes them desperate.
Chapter completed!