Wednesday, September 23, 2015

Subsidy is a bottomless hole take out O2O won t burn

Photo: network

For the average consumer, O2O takeaway service not only makes us feel the meal can be beyond easy, also because subsidies make eating more cheap.

The United States Mission, the hungry, Baidu sells these platforms by way of subsidies to attract a lot of users. This is the take-away business for the first time to snatch war. However, such user is money and no loyalty, which subsidized jobs will flow to the family. As the capital of winter approaches, these companies are also aware of can't continue to fight any longer.

"This war is to end subsidies will stop sooner or later. "Hungry co-founder and COO kangjia recently said publicly. Kangjia interface journalists in an interview, said current subsidies do reduce, but does not stop, which continued to burn and it will last long and have less to say.

"Money is a kind of marketing tool. Depending on quality, you get user flow, frequency, and finally came to a conclusion, you burn is not cost-effective. If it is worthwhile because there will be a subsidy, the subsidy from the trends must be gradually decreasing. "Kangjia said the effects of subsidies on the user product weights falling, other indicators such as service quality and user experience are on the rise.

Takeout taxi platforms for the subsidies now initial subsidy is the same. User's psychology is where there is a discount, would have to run to the side. But takeout platform are unlikely to be as little as a taxi software wars so much money, they need to find another way.

O2O sold at present consists of two modes of operation, namely, to provide information and IT system "light mode", and providing logistics and distribution platform "model".

And hungry is the former, they profit model through to the business IT systems ranging from 3000 to 5000 Yuan services, but does not rule out hungry and trying to "model" direction. Kangjia told interface journalists: "in August this year thaw to 630 million dollars, will be mainly used in the distribution and rich on the product category. "

Home cuisine may choose "mode", which uses the create distribution of assets to provide users with better service and charge a fee for takeout. Interface news, it was understood that home dining this difference does white-collar consumers even more reluctant to use. Home Dining logistics distribution process, will separate the hot dishes and cold to get to, make food taste not odor, dishes are also good for their willingness to pay 6 bucks for this kind of experience for the delivery costs. This is home food sources of income.

Home gourmet founder Sun Hao had previously said publicly that they will not make a big area of subsidies. "We believe in the life of this interval, in fact most valuable or fixed in the spending power of the population, this group has some sensitivity on price, but they sell this thing, is above all a service guarantee, such as speed of delivery. "

Look hungry also in heavy modes. Interface for journalists to understand, as the hungry market to enter the white-collar market, it also began to set up its own logistics, there are about 5000 people delivery team, also in cooperation with other logistics companies. Are saying iPhone my perspective to talk about

However due to white-collar workers and college students ' demand for services is high and low, so how do you balance the two, they also need to think about issues. After all, college students may care more about price, while white-collar workers are more interested in quality of service experience.

Recent drops takeover rumors of a hungry, kangjia has not commented, but said the two sides will be cooperation at the operational level, new products will emerge soon.

A O2O insiders told interface journalists: "O2O industry not only had takeout, there are a lot of areas. Now out of the market has been dominated by two big enterprises, user also so much. For them, how to improve the quality of service to retain customers is the most important. "

Reduction of subsidies that appear to be reducing the burn, but construction logistics still requires a very large investment, however this kind of commitment, can derive what the value of new projects, delivery platform also groping.

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