As competition in the shared bicycle market further intensifies, major bicycle companies have entered into "subsidy wars" and "bike manufacturing wars."

Zhang Yida predicts that a large wave of shared bicycle companies will be eliminated from the market.

Sure enough!

Zhang Yida was playing TikTok in the office when Huang Xiaofeng opened the door and came in and said, "Mr. Zhang, a shared bicycle has gone bankrupt."

"Who? Who went out of business?"

Zhang Yida put away his phone and asked, thinking that it poured really fast!

"Goku Bike!"

Huang Xiaofeng handed the phone to Zhang Yida and said.

Zhang Yida took the phone and looked at it. An eye-catching title was highlighted - "The first shared bicycle to go bankrupt in the country".

The content probably looks like this:

Due to a large number of bicycles being lost and damaged, our company decided to officially withdraw from the shared bicycle market starting from July 1, 2015.

All users are requested to start withdrawing deposits. The service will be officially stopped on July 1st.

The founder said: He had previously thought of some profit-making methods, such as car body advertising, installing a display screen on the car, and extending the development of big data.

I have also thought about cooperating with enterprises, selling the car rental income to the enterprise, and giving it to employees as transportation subsidies. For example, a 100,000 yuan cycling ticket can be sold to the enterprise for only 50,000 yuan, and the enterprise will use it as a benefit to employees.

Unfortunately, all attempts failed!

A total of 1,200 bicycles were released before and after, 90% of the bicycles have been lost and cannot be recovered, resulting in a total loss of millions of yuan.

The founder summarized this failure experience and informed subsequent entrepreneurs:

"Don't blindly chase after the trend when starting a business. You can't catch up with the trend, but wait for it. You need to work deeply in an industry so that you can be prepared when the opportunity comes.

In addition, the earliest companies in the industry can also do it, which is a first-mover advantage.

Those who come later do not have ten times the strength, so resources should not go in. If you cannot do it big, the resources at the top will be too concentrated."

Zhang Yida thinks this is a sensible person. Huimin Bicycle has put more than 1.7 million bicycles into operation and has entered more than 100 cities. Why are you here to join in the fun?

Please don't rush into the flames, okay?

If you come in and start a price war, you will only lose 1 million yuan a month. Huimin Bicycle is so big, the monthly loss is hundreds of millions!

"Old Huang, what do you think?"

Zhang Yida finished reading the news on his mobile phone, handed the phone back to Huang Xiaofeng, and asked.

"What do you think? It's normal for Wukong Bicycle to go bankrupt. Our industry seems to have a very low threshold. With a little money, you can build one or two thousand bicycles and come in for fun.

In fact, this is not the case. The biggest barrier in this industry is capital.

Bike sharing can also be regarded as an asset-heavy industry, and every bicycle produced is an asset.

If we don't invest billions in this industry, we won't be able to make big waves.

One or two thousand bicycles are probably enough to cover a prefecture-level city."

Huang Xiaofeng expressed his own opinions. He didn't mean to look down on anyone, he just analyzed the problem very objectively.

Zhang Yida also agrees with his view. If Wukong Bicycle is the first company to launch shared bicycles, it may still have some opportunities.

As a latecomer to the shared bicycle industry, it is actually already at a disadvantage. If there is no advantage in financing, it will only make matters worse.

“It seems that after launching the first batch of bicycles, the founder of Wukong Bicycles recruited investors across the country and conducted crowdfunding.

A financing intention of 30 million yuan was determined, but only 130,000 yuan was finally implemented.

Sharing bicycles is not an industry where investment can yield quick results. This industry requires continuous and persistent investment to achieve results.

How can Wukong Bicycle survive under such circumstances?"

As the first shared bicycle company to go bankrupt, Wukong Bicycle has great analytical value. Huang Xiaofeng said a few more words.

“I see that this Wukong bicycle was lost and damaged by 90%? It’s a bit shocking!

What is the loss and damage rate of our Huimin bicycles?”

Zhang Yida still sympathized with the founder. After all, after spending so much real money, it was basically all wasted.

Seeing what happened to him reminded me of the loss and damage rate of Huimin's bicycles.

A bicycle damage incident occurred in Yuzhou some time ago. Zhang Yida tried hard to "kill the chicken to scare the monkey". I wonder if he has controlled the loss and damage rate of Huimin bicycles?

“We are cooperating with the world’s largest supply chain manufacturers, so the quality of our bicycles is very guaranteed.

Wukong Bicycles are different. They cooperate with small manufacturers, and the quality of the bicycles themselves is not good, so the damage rate is very high."

Huang Xiaofeng first compared the two sides and then added:

“There is no way to completely prevent bicycle damage and loss.

However, the press conference you held last time in Yuzhou, Mr. Zhang, was still very effective.

The loss and damage rate of bicycles has dropped a lot, and currently about 90% of our bicycles are still in normal operation.

This data has become much better. The damage and loss rate was shocking some time ago.

I guess many people are still afraid that if they are caught, they might go to jail.

Let me tell you, this evil spirit should be killed."

Huang Xiaofeng was filled with hatred when he mentioned this matter. As the largest shared bicycle company in the country, Huimin also suffered the most serious damage and loss in terms of quantity.

"90%, just within the range of psychological tolerance!"

Zhang Yida's face brightened slightly. Huimin Bicycle's latest batch of 1 million bicycles had been put on the market less than three months ago, and the damage and loss rate had been reduced a lot.

Last year, the damage and loss rate of the 720,000 bicycles should have exceeded 20%...

It’s heartbreaking. The manufacturing cost plus delivery shipping cost, the cost of a bicycle is 1,000 yuan, and 170,000 units is 170 million yuan.

If you include the labor costs of dispatchers, the manufacturing, delivery and operating costs of a bicycle far exceed 1,000 yuan.

"By the way, for those damaged and lost bicycles, please send an instruction to the operation and dispatch personnel in each region to search for them. If possible, recycle them as much as possible!

For every abandoned bicycle recycled, a commission of 30%-50% of the recycling price will be paid to the dispatcher.

We were picked up by the waste collector and we didn't get a penny. We might as well use the money to provide benefits to the offline dispatchers.

But there is one thing you should be careful about, don’t let some people take advantage of it and destroy the good bicycles and then take them to the company to recycle them for money.”

Zhang Yida thought of the "bicycle graveyards" in his previous life that made patients with trypophobia go crazy when they looked at them. It was really a shame that the environmental protection cause had turned into a garbage cause.

In this life, try to avoid this phenomenon.

Regardless of other car companies, Huimin Bicycle must maintain its brand image.

"Okay, I suggest setting up several recycling factories. After recycling the abandoned bicycles, break them into parts and reuse the parts that can be reused.

Not only does it save costs, it also saves resources.

While maintaining our brand image, we can also appropriately reduce some operating costs."

Huang Xiaofeng drew inferences from one example and came up with another good idea.

“This is a good idea. Let’s set up recycling factories according to regions and bicycle placement density!

You can discuss with Fujitec and get them and some parts suppliers to invest in individual stocks.

They are better at doing this. We mainly focus on shared bicycle operations."

Zhang Yida thought about it for a while and decided to recruit people to join him. When running a business, Zhang Yida believes in gathering the strengths of others and making up for his own shortcomings.

"By the way, in the backend of Huimin Bicycle, you can see which bicycles have not been used for a long time.

This part of the bicycle requires manpower to be inspected and repaired.

We must achieve this: more than 95% of the bicycles put on the market can be ridden normally.

This can also be regarded as a step to improve our brand image.

Think about it, if a user is anxious to ride a bicycle, searches around and finds that all the bicycles are broken, then Huimin Bicycle can ride normally.

If things go on like this, users will vote with their feet and they will all know which bicycle company they should become loyal users of.

In the short term, implementing these measures will increase our operating costs.

But in the long run, these measures to improve user experience will be transformed into brand influence and market appeal."

The shared bicycle war has begun, and Zhang Yida is also ready for a protracted war.

Some of these competitors in the market will collapse on their own, and some may receive strong support.

Refined operational methods are designed to specifically deal with these competitors who may receive strong support.

"Okay, next we will arrange some bicycle maintenance training for offline dispatchers in more than a hundred cities.

Let every dispatcher learn some simple bicycle maintenance skills.

During their offline inspections, they can repair some lightly damaged bicycles.

Bicycles with serious damage will be transported back to the operation centers in various places for overhaul."
To be continued...