Didi and Uber China merge, but red envelopes and subsidies will continue

Today, the news of Didi's trip to acquire Uber China swept up the circle of friends. For this news, the industry insiders have made a detailed interpretation. The merger of the two parties directly solved the problems of the competition between the two giants, but does this mean We will bid farewell to the era of subsidizing "burning money."

Although the two companies still maintain the independence of the brand and operation, that is, the two APPs will still exist, but users and drivers have also started to worry about whether the two joint ventures will lead to higher prices. Will the merged company reduce subsidies and stop red packets in order to reduce costs? These seem to be reasonable,

However, for the second question, Didi Travel has responded: “In the future, for a long period of time, we will continue to focus on maximizing the user travel experience as one of the business directions. Subsidies and driver incentives will continue to be issued."

For the first question, although there is no statement on the trip, we do not need to worry too much. The merger of Didi and Uber does not mean that the competition has completely disappeared. There is also an easy-to-carry and special car in the online platform platform market. And other brands, and they will still attract users with subsidies and other preferential activities; In addition, although DDT and Uber occupy the majority of the market share of the car market, the actual penetration of D The rate is only about 1% (15 million drivers and 300 million registered users), so Didi will inevitably not choose to raise prices and at the expense of users.

In addition, the market price of the online tour car is also controlled by the regulatory level and is not entirely determined by the platform. For example, the recently announced new deal about the car's new deal made it clear that the online booking platform must not have "to exclude competitors or monopolize the market," and operates at a price "below cost" to disrupt the normal market order.

Finally attached to the response to the drop, Uber merger:

The combination of DDT and Uber marks the beginning of a new stage in the travel industry. There are only two U.S. and U.S. homes on the battlefield. The future travel market will be easy to reach and the drop-off will be due to the fact that the battle is easy. The soul!

What needs to be emphasized is that the merger of DDT and Uber does not mean that competition in the field of travel has ended.

First of all, the combination of Didi and Uber will make the Chinese travel market return to commercial nature, and the era of frenzied subsidies for “burning money” will go back to the era of winning markets with services and quality.

No one knows the travel needs of elite people more easily than they do. They are easy to come by. They will grow faster, use quality better, and make everything better and easier.

Second, the only advantage of sustainable competition comes from exceeding the competitor's ability to innovate.

At present, although the profitability of China’s travel platform platform companies may seem to be far behind in the near future, the easy way to share the ecology of the car is now innovating in the global travel platform companies. It is also unique, and we hope this one. Road can not only become the cornerstone of the industry's second survival, but also can challenge the first, so easy to distance dreams go one step further!

This merger also allows the public to recognize the value of competition. Only an open and competitive market can provide users with fair and efficient mobile travel services. It will become the second easiest to provide users with better services and choices, and to create a full The vitality of the industry atmosphere and make unremitting efforts!