Mobike's Huge Financing In Exchange For Business Model?

For Mobike worship, the embarrassment is that although the acquisition of Tencent's investment, but 

want to copy "trickle is so fast with a micro-channel overtaking" the possibility of very low, 

because Tencent also invested in the investors ofo Drops. Whether Mobike or worship of, in fact, only 

the layout of a piece of shared travel.

2016 pairs of shared bicycles is not calm, the pursuit of capitalism, the Mobike bike and ofo become

 two phenomenon-level products. We have witnessed the myth of the speed of bicycles on the strength

 of capital, but we have neglected the thinking about the business model of the company when we 

focus on the influence of the capital level on the cycling market.


Short-distance travel opportunities, huge potential energy under the crazy expansion


Why can Mobike grow within a year as a rare "unicorn" in start-up companies, thanks to the shared 

effect of cycling itself.


The high mobility, population density, and urban functional zoning of the Tier-1 cities has 

resulted in significant commuting needs. The development of public transport to meet the basic 

needs of most users travel, but the subway and bus can not achieve the capillaries of the coverage,

 when the user travel distance reduced to within 3 km, the user time cost of the bus, squeeze the 

subway Poor experience will allow users do not choose the subway or bus travel, which makes the 

travel market has spawned a huge opportunity, which is drop and Uber year to the rapid development 

of the root causes.


"70% of China's travel needs will be concentrated in the range of 3 km," the drop of previously 

disclosed data in 2015, a single mileage of less than 3.7 km, also confirms this view. But this is 

a drop is far from being able to meet the huge market demand. The drop in the completion of the 

merger to complete the price adjustment, the price of the Express has been basically flat and taxi,

mobile travel price advantage has been quietly disintegrated, which makes the user may not find a 

new way to travel within 3 km.


The original can not be satisfied within the 3 km travel needs, and drop out of the market 

competitive position, which provides the survival of the shared bicycle soil. Coupled with this, 

government public bicycles have already completed initial user habits, and when more poker-free 

bikes appear in front of users, there is no longer much user education required. These potential 

energy under the action, whether it is Mobike or its biggest competitor of the high-speed expansion of 

the market ushered in the stage.


Huge potential also brought about fierce competition, in addition to ofo and Mobike, there are more 

than a dozen companies have also launched a shared bicycle service, which makes a large number of 

shared bike start-up companies get together first-tier cities, in a short time is caused The supply

 of vehicles is far greater than the status of user needs. But in such a scale economy as the core 

business model, the expansion rate is still the only key to enterprise development. As the taxi 

market, in the first-tier cities user growth gradually slowed down, gradually put the number of 

bicycles saturated, the share of bicycles also began to sink rapidly, and gradually from the 

first-tier cities to the second and third tier cities spread.


As of the end of 2016, Mobike opened eight cities in the service, and access to D round of financing,

Mo worship is accelerated sinking speed. Mobike bikes CEO Wang Xiaofeng to accept the "China 

Entrepreneur Magazine" interview frankly, "dissatisfied, but also faster", and this anxiety comes 

from the competitors ofo. Compared with Mobike just complete the first-tier cities, ofo, opened 33 

cities, which is now that has put 800,000 shared bicycles, the Spring Festival will be extended to 

100 cities.


Mobike's huge financing in exchange for business model?


Delay in the number of cycling, Mobike financing hidden behind the three hidden


In the view of Wang Xiaofeng, several rounds of financing have allowed Mobike to consolidate its 

advantages. "As the market leader, Mobike's current profitability is much better than the second to

 the dozens of shared bicycles." But compared too early announcement of the number of delivery has 

reached 800,000, Mobike worship has been slow to publish their own data, but after financing, Wang 

Xiaofeng has repeatedly stressed the need to accelerate the repairer in 2017, "get financing after 

the first One thing is that we have to build more cars. "


For Mobike, 2017 will be the development of the main theme of accelerating repairer, and as much as 

possible to cover more cities, but from the beginning of the business model of the three major 

worries are restricting the company's long-term development .


1, high-priced cars can not once and for all reduce operating costs


For maintenance costs, Mobike from the beginning to choose high-priced repairer, before the news 

broke out that Mobike cycle was cracked after the price of 3,000 yuan to sell online, to some extent

 from the side to prove that Mobike worship The cost of repairer is really high. Such a high cost of 

repairer can help Mobike to reduce future long-term operating costs and build a model that looks "

once and for all", but that is not easy. (Off topic, Mobike worship high car in exchange for the user 

experience is actually not good.)


With the existing user needs to form the potential energy can make Mobike worship at the beginning has 

a very good user growth, the number of input vehicles and the number of user growth can form a good

slope linear growth, after Mobike previously claimed that a car Can bring eight users to pay the 

deposit. This is definitely a compelling model, since Mo mobike's model at that time required only 1.5 

years to recover and Mo bike's vehicle mass was manufactured over a four-year period of use. But with 

the end of the first wave of user bonuses, and the cold weather in the north, the slope is 

declining.


2, over-reliance on external financing is difficult to form sufficient barriers


The slump in user growth is due to the pressure on the cost of the Moab service, which is not a 

model for "putting the vehicle - pulling the user in to pay the deposit - by making a new car 

through the deposit." However, since the sharing of bicycles is a typical model of economies of 

scale, that is, "in a specific period of time, the absolute increase in the amount of enterprise 

products, the unit cost decline, that is to expand the scale of operation can reduce the average 

cost, thereby increasing the profit level, ahead of the market The dominant position of the party 

can siphon to more users, thus forming barriers.


Moabai and ofo are on different occasions to declare shared bicycles have entered the "super and 

strong" competition, but on who is that "a super" controversy is very much. However, when the 

competitors of the low-cost car reparations + transformation of the way to share a bicycle, you can

 quickly roll out the density of cycling, the high cost of investment in the Mo Bai regardless of 

the speed or quantity has long been difficult to compete with, Achieve the same effect with ofo, 

need to pay a higher price. This higher cost means more capital support, which explains why Mubai 

would be eager to raise funds twice in a half year.


Faced with the number on the backward, Mopei can only choose the answer is financing financing 

refinancing, hoping to use the power of capital to narrow the gap between the ando. "We need the 

wind to get us to win the time," Wang Xiaofeng speak of profit is still too early, the main task 

is to expand the user base. The reason for this choice is the high cost of repairer and the sharing

 of cycling economies of scale caused by the conflict.


3, leasing the commercial origin of finance there is a fatal drawbacks


Moebay's business model, unlike the traditional sense of the shared economy, essentially more like 

a leasing financial business. The greatest value of Mabai is "the money deposited behind the 

deposit and the value of the population used in the product." With the increase of hardware supply 

and the iteration cost, the capital will settle down to financial leverage when the deposit is more

 than the cost of cycling.


So now the Moab need a lot of money to continue to add and maintain the mode of operation, wait for

 the harvest of the day. The money can be from the financing, it can be a deposit from the user, 

but once the size of the bottleneck, the game may be difficult to continue. Because it means that 

not only get the deposit from the user less and less, the capital market can give support will also

 be reduced.


More worthy of the warning is from the policy of risk, a few days ago the central bank announced 

the official deposit of third-party deposit deposit, Moab through shared bicycle rental finance to 

do the road seems to face policy risks, Thanks to the future whether to continue to get the capital

 support cast a shadow, after all, because the policy issues into the plight of layoffs we have 

just read the story.


Taking history as a mirror, sharing bicycle race or will soon be over


Holding the banner of sharing the economy launched a pile-free shared bicycle mode, although not an

 externality of the C2C model, but the pain of the user point of the Mo worship or quickly became 

the darling of the pursuit of capital. In the completion of D round of financing into the unicorn 

ranks, Mo worship has become a lot of people in the eyes of "the next giant field trip."


Moeb has also been exposed to the financing of a lot of funds said that in order to compete for 

investment opportunities Moabai, do not even do a detailed due diligence under the premise of 

signing an investment agreement, which in the Moab seems to reflect their capital sought after 

performance , But in fact most of the time the capital will not be so easy to make a decision. The 

Mopei story can say whether the key is still high vehicle costs and urgent needs of the vehicle to 

find a balance.

If the story can eventually round, then happy, if the final round is not, it is likely to fall into

 the US group to sell Catworld movies such as Brokeback to survive the situation, even as music as 

the edge of the cliff to the "barbarians" Free to buckle the door into the room. But with music as 

the United States Mission in different places, almost overnight fame Moab only two years of 

development, apparently not yet formed a business matrix, simply can not afford such a risk, in the

 event of funding chain problem is almost completely lost.


Fortunately, however, the capital of the background of the winter capital to centralization of the 

tendency of Mo worship in the previous rounds of financing process to get a large number of 

mainstream funds, as well as Tencent, Ctrip such a strategic investor investment, which also 

ensures that even if it is to go To the most dangerous time, it will not easily fall, after all, 

they have tied too many interests.


However, the field of shared bicycles, the sharing of bicycles has not yet shown a drop as 

important as the value of the entrance, did not catch up with Tencent, Ali taxi software to help 

promote the general trend of mobile payment. The Moebay, the more embarrassing is that although the

 acquisition of Tencent's investment, but you want to copy "trickle is so fast with WeChat 

overtaking the possibility of" is very low, because Tencent also invested in the ofo Investors drop.

 Whether Mo or worship of, in fact, only the layout of a piece of shared travel.


Today's shared bikes have become a capital race, and the sharing of bicycles under the help of 

capital has become a "car" game, but the future market probably does not need so many bicycles. The

end of this shared bicycle battle time probably will be faster than sharing cars. This time who 

touch the number of bicycles in front of the user, whoever cover as much as possible, then the 

winner will win the winner.