The Past Three Years, China's Most Best Business Innovation Model Mobike Can Go Far?

One

A classic story of the wind:


Tuhao sea election girlfriend, to the three candidates for a hundred dollars, so that they use the 

least money to fill an empty room. The first girl bought a lot of cotton, barely loaded the room to

 the twenty. The second girl bought a lot of balloons, loaded two thirds of the room. The third 

girl is snow and ice, she spent a little money to buy a lot of candles, warm candlelight instantly 

lit the whole room.


Tuhao finally chose the big chest that one.


When the blind date, the man will talk with you feelings, talk about life, talk about the ideal, 

but he is most valued, the actual chest I have to do the venture, I have seen many entrepreneurs, 

and I will talk with them and social values, talk about the founder of character, talk about the 

composition of the team, but the final decision to vote when not, I actually Just look at the 

business model.


Chinese people are afraid of fear, and has been bound for too long, so once the environment permits,

 the passion of entrepreneurship is difficult to contain in the Divine land on the wanton and 

soaring. But the vast majority of entrepreneurs in fact did not want to clear his business model, 

so most people's youth is only hormones and fortune dream blinded and traction, was wasted in the 

dangerous business path.


Business model is actually a chain of the system, a good business model innovation, at least to 

understand the following five core issues:


1, you are ready to provide the product (or service), to solve what needs? In other words, who is 

your target audience? Just need, or improvement? High frequency demand, or low frequency?


2, the market demand is large enough? If it is a small market, it is not a business, is life;


3, your model, who will move the cheese? In other words, how big is your potential enemy? Which 

determines the friction coefficient and resistance of your business, but also determines how far 

you can go;


4, your model, is not easy to be copied, was copied?


5, profit model - this is the most, most importantly, the most important Simply put your business 

model, how do you make money? Any business model that does not consider making money is a rogue. 

But if you play rogue (of course, can not be illegal) will be able to solve the problem of making 

money, I will not care you are a rogue or a gentleman. If i ask an entrepreneur of his profit model,

 if the answer is that I have not considered this thing, I now consider burning money to do the 

user, catch the traffic, I will keep him enough respect, and enough distance;


Breaking the most innovative cattle, is undoubtedly the technical innovation. But the Chinese 

people

 start, like opportunistic, can not be lonely, not willing to R & D investment, do not want to wait,

 so 99% are just a simple business model innovation - everyone's business, competition is the actual

 business model.


So, in the real estate sector has a famous saying: house, in addition to lots, or lots. In the 

Chinese venture investment industry also have such an experience to sum up: the project, in 

addition to business model, or business model.


▌ Second,


In my ten years of venture, I have seen countless smart business model innovation, many are 

eye-catching, but it is very deadly, then very few.


No it, because there are few models to answer the above 5 points better. In general, can answer 1,2,

3, is a fairly good project. Can answer 1,2,3,4, is the top grade project. Can 1,2,3,4,5 at the same

 time to answer, you can crown the "most Niubi" three words, and is the best items.


If you want to choose China in the past seven years the most Breaking of innovative business model,

 I will tend to Lei Jun millet. He is the first to use the Internet to do the Internet, with almost 

no money dumping prices to obtain users (flocks), to create ecology, and then to find "pig" to pay 

- that is, Lei Jun's famous words: wool out of the pig.


There is no doubt that the smartphone market is big enough, the price is sensitive to the supply of

 silk is enough, but the core business of Lei Jun's business model is still just a simple marketing 

model of innovation, he will touch the dual interests of mobile phone manufacturers and sales 

channels, lasting.


Once other manufacturers follow up on channel reform (such as VIVO and OPPO), and even with 

technological innovation to compete (such as Huawei), and your ecology and "pig" have not had time 

to find a good, downhill is inevitable Is why millet began to be forced to expand the product 

category (such as millet bracelet, millet TV, etc.), continue to dig hardware, rather than digging 

ARPU value reasons.


In other words, Lei Jun perfect answer to the above 1,2,3 three questions, 4 answered half, 5 no 

answer. So, millet this project, far from the market imagined so well.


If you want to choose China in the past five years the most Breaking of innovative business model, 

I vote to drop.


Travel is easy, almost all of the people, the market is large enough, and the absolute high 

frequency, and because the early to burn a lot of money to circle users, not enough money, can not 

do this innovation.


But it is also obvious that the flaws are: touched the interests of almost all commercial passenger

 car chain (such as rental, public transport, the relevant authorities, etc.), and this chain of 

people, belonging to the community will give sympathy to the so-called "Vulnerable Groups". The 

most critical, they are organized, not scattered individuals. Organization to rebound, power is can

 not be underestimated of. Moreover, after burning money, in the foreseeable time, drops do not see

 how to make money. Profit model has been unclear, this is the biggest drop in the business model 

Mishap.


In other words, the drop of the perfect answer to the above 1,2,4 three questions, 3 answered the 

part, 5 no answer.


So, the drop of this project may be a good project, but certainly not the "most Niubi" project. 

One of the five flavors, throw money into the people, they will realize.


If you want to choose the last three years of China's most innovative business model, there is no 

doubt, is to Maibai, ofo as the representative of the "shared bicycle" - and I would like to it as 

"the most Niubi" three words The


▌ three,


Share the bike of this business model innovation, it is similar to the representative of the 

company Matthew - really pay homage to, stunned.


Ofo is the first to set up a shared cycling company, founded in 2014 by the founder of the five 90s

 from Peking University, June 2015, the sharing program launched in Peking, successfully acquired 2,

000 bicycles in Peking, December, ofo day orders close to 2 Million single. Jinshajiang venture 

capital partner Luo Bin to Peking University to work, see the road a lot of small yellow car 

flashed, he realized that this is a worthy investment company, to seize the students just need, and

 is high frequency, so There will be a 2016 after the Spring Festival A round of financing.


The first day of 2014, a friend in the Mercedes-Benz China Design Center, told Hu Weiwei, the 

future of the personality travel tool will be the future of the staff, There is a wave of new 

trends, Wei Li, chairman of the car to ask her, have not thought about sharing travel projects, and

 later with the geek park founder Zhang Peng had been discussed. Hu Weiwei began to have the support

 of these investors, and invited from the excellent general manager of Shanghai left Wang Xiaofeng 

as the CEO of Ma Bai.


Both of which are growing rapidly, from the following table the amount of financing and valuation 

can be seen:



"Shared bicycles" is the reason why the development of such a rapid, almost overnight, all kinds of

 small yellow cars, such as mushrooming in the streets of many cities, because this business model,

 almost perfect answer to my five core requirements.


First of all, short distance travel is absolutely just needed. Especially the increasingly crowded 

big city and the peak period, has been a huge pain point, bus, subway, rental, private cars can not

 be resolved. In the past, some cities (such as Shanghai) to try the "public bike", due to the 

district government their own way, the main body is not clear, inadequate delivery of bicycles, 

car problems and other problems, and finally almost all the way.


Mo Bai as the representative of the "shared bicycle", the company put the vehicle, open the phone 

APP will be able to view the nearby vehicles, see the appropriate can also make an appointment in 

advance. Do not have to stop the car, do not have to do card, two-dimensional code sweep sweep will 

be able to unlock, do not have time to stop in any legitimate non-motor vehicle parking point can 

be half an hour charge a dollar, low cost to ignore the car. And simple and easy to use, almost 

completely, the perfect solution to the city "last mile" troubled.


Second, the market is huge. As of December 2016, China's "network booking car" user size of 168 

million, compared with 2016 in the first half increased 46.16 million, a growth rate of 37.9%. 

Share the potential size of the bike, in any case not less than this.


Even if you are a landlord who does not care about the cost of travel, once you have experienced a 

friend to eat, open a private car from the East Side to Xicheng takes three hours, and then spend 

an hour to find the parking bit of pain, you know the vast majority Time, would rather subway. 

After the subway station ride riding a bike to the restaurant roadside, the car fling, how happy 

and chic. So, you can almost all of the city to work as a target group.


Third, this thing almost did not touch any of the old world which "Tuhao" interests, except Morocco

 - and Morocco is almost all objects of the city. Moreover, the friction is all "underground party",

 no one organization, completely not a climate.


Finally, it is also the most "worship", is "shared bike" from the beginning there is a very clear 

profit model: deposit. To understand this, you have to sincerely come up with the people who come 

up with this model.


The shared profit model for bicycles is partially realized through time-sharing leasing, which is 

financed by receipt of a deposit, cash flow and expansion (see figure below):



Time to rent that money, in fact, it is not important, whether it is a worship, or ofo, I believe 

that their hearts are clear: even if there are 100 million users, every day with an hour, also 1 

billion of income, but need The face of more than 10 million bike delivery and hardware losses, 

plus other management fees. More importantly, due to its short-distance characteristics, and the 

standard bus and traditional "public bike", its pricing floating space is limited. So, they did not

 expect to make money through an hourly rent of $ 1.


Through what?


Deposit - this is a very talented innovation.


You have to send your phone number, real name, identity card number (to real-name authentication) 

are sent in the past, at the same time, you have to submit 299 yuan (or you have to submit your car,

 Matthew) or 99 yuan (ofo) deposit.


For any Internet business children, through long-term operation to obtain user registration, as well

 as a phone, is already a big happiness. "Sharing the bike" is played, equal to the girl, the first

 time to meet each other to get all the identity of the information and telephone - which is very 

demanding on the user requirements, a lot of strong privacy users must resist, but "share Cycling "

with the need to solve the pain point one-time to achieve.


The most critical, but also allows users to dig a wallet - this is the last part of all business 

models, but also the most dream of the link.


The reason why this is a genius of innovation, because the deposit of 299:


1, can be retired, so most people will not resist the payment of the money;


2, you can retire, but the company will not automatically retire, most people will not take the 

initiative to ask back, because the next car have to pay, the result is a lot of money 

precipitation in the company, equal to free occupation;


3, the deposit can not be used, can not be used as a rental fee support. This is equal to the money 

will only increase, will never be reduced;


4, because a deposit corresponds to a registered user, rather than a car, which means running a car,

 can lock more than 1 user. Matthew is currently a car locked 8, equal to put a car, get 2400 yuan 

(300 * 8) of the "deposit".


In this sense, every bicycle circulated by Mount Abbas is similar to a bank. China's largest network

 of financial institutions is the Agricultural Bank, the country has more than 24,000 branches, 

30,000 ATMs. And on January 23, 2017, Foxconn became the new strategic investor of Matthew. The 

cooperation will be expected to significantly increase the production of motorcycles, the total 

annual production capacity is expected to be more than 10 million - and each bike, is a mobile 

storage point.


Only 10 million put on the assumption that each car locked 8, 300 yuan per person deposit, the total

 amount of precipitation will reach 24 billion - this is the most classic Internet financial games 

are played.


Not to focus on profitability, but to solve the cash flow, do not sell the hardware and by paying a 

deposit to make up for cash flow, reducing the general Internet companies to cultivate users through

 the massive subsidies generated cash expenses, which is a very clever step.


In other words, the "shared bicycle" solves the patterns 1, 2, 3, 5 (see table below):



Only 4 slightly flawed, but harmless because the most critical profit model problem, from the 

beginning, has been resolved - this is consistent with the "most Niubi" model definition.


▌ four,


The last question is: "shared bicycle" this business model, how far can you go?


Or, what are the problems?


The problem still exists,


1, the current high cost of hardware


Reducing the start-up costs of the "savings" is the top priority for the success of this model in 

the future. The cost of cycling is low, so the deposit is also low, but the cost of cycling is 

several times higher. The difference between the cost of bico and the cost of cycling is reflected 

in the table below. Moebay sports version of the expensive, as is its own factory production, 

especially the use of non-chain drive structure, greatly increasing the weight and cost of cycling.



2, difficult to ride, hard to find a problem


The company in order to reduce the repair rate, the design of the vehicle must not ride a normal 

bike ride, the experience will be a lot worse. And users in order to facilitate their own use, it 

must be in violation, and even possession of vehicles. But these are sweet troubles, not difficult 

to solve.


3, deliberately damage the problem


At least the driver of the motorcycle on these cars will be "hatred", but as mentioned earlier, this

 problem is not big.


4, the problem of competitors


Whether it is Matthew, or other, in fact, have just started. "Shared cycle" one of the biggest 

problems in the business model, that is, copyability is too strong, the threshold is not high. 

Matthew and other pioneers must fully speed up the run, enclosure first.


5, policy support issues


On the surface to see "shared bicycle" did not touch too many people's interests, but also green 

travel concept of environmental protection, but once the climate, grab (park) space, grab 

(exercise) road, are almost inevitable. In this sense, "shared bicycle" is actually moving the 

whole car cheese, by the interest groups and even administrative pressure, is entirely possible, 

must attach great importance.


Today's impetuous China, there is an exciting business model is not easy, really wish "shared bike"

can go all the way.




If you want to do bike sharing like mobike in China, you can contact with me by Email:sales4@omnicycling.com

Web:www.omnicycling.com

Phone:+86 18100280527