Rebirth starts from e-commerce

Chapter 491 The Law of Conservation of Contradiction
"The platform transfers the conflict to riders and users. It seems very clever, but it is actually the most stupid way."

Li Shan stated impassionedly at the meeting: "The platform has no ability to alleviate the conflict, or has no thought of mitigating the conflict at all, so it will transfer the conflict to the rider and the user, making the rider and the user hate each other."

"The contradiction has only shifted, and has not disappeared. One day, riders and users will find that they have been tricked by the platform."

"This is the law of conservation of contradiction."

……

Li Shan had always felt that the opponent's model could greatly improve efficiency, and he was worried that Fantuan would slowly lose after this takeaway war turned into a protracted battle.

However, research these days has found that what the opponent's model brings is only the efficiency of expansion.

The agency model at all levels allows their outlets to be quickly spread across the entire network.

Therefore, they have only been established for less than a year, but they quickly occupied the market, and their share is catching up with rice balls.

You know, it took several years for onigiri to achieve the same size.

At the same time, the agency and webmaster responsibility system have greatly improved their management efficiency.

The small boss of the site can directly manage each delivery person and give full play to their initiative.

You can follow the riders with a whip to squeeze their time to the limit.

On the contrary, the rice ball delivery adopts a direct sales model, without agents at all levels, which can easily cause low-level employees to be lazy.

Every system has its advantages and disadvantages.

The opponent's agent system can quickly expand the market, and at the same time, these agents must share the profits.

The more agents in the middle, the more deduction points will be layer by layer.

In order to maintain this chain and make money from the platform to the agents at all levels, it is necessary to extract higher points from riders and merchants.

And the money is ultimately borne by the user.

A takeaway is only 30 or [-] yuan, and riders have to deduct a few yuan for each order. Agents at all levels take commissions, platforms take commissions, and restaurants have to pay for labor, shop rent, and ingredients... These costs are ultimately borne by users.

After this set, the cost of ordering takeaway will be much higher than eating in the store.

There are no agents at all levels for rice ball delivery, and the riders are also managed by themselves, which can theoretically minimize the cost.

Moreover, these riders themselves come from intra-city delivery, and can allocate management costs to the intra-city delivery business, which further reduces costs.

This is a market worth hundreds of billions of dollars. Due to too many layers of agents, the rival platform may only be able to maintain a small profit even if it takes more than 20% of the revenue and the revenue exceeds [-] billion.

As long as Fantuan lowers the draw point to 15%, or even 10%, the opponent will be very uncomfortable.

The profit distribution of their entire agency chain will inevitably not be realized, which will inevitably lead to intensified conflicts between the agency and the platform, and in the end they can only fall apart.

Fantuan only needs to maintain the current scale and wait for the day when the opponent collapses.

In fact, this is also the strategy that Luo Xiu settled down very early.

Take the market through the first-mover advantage, and then reduce the profit to the extreme.

Just like Coca-Cola, it doesn't have much technology.

Do the same with soda, you can't be cheaper than me.

As long as I take 5% of the profit, it is enough to eat and drink.

And if you also sell it for 3 yuan, you can't afford the production line, agents at all levels, channels, and promotion expenses.

In a market worth hundreds of billions of dollars, as long as rice balls maximize their own profits, cut out middlemen, give more profits to merchants and riders, and keep no more than 5% of their profits, no one else will be able to compete with you. .

Don't other beverage companies want to make Coke?They took a look at the gross profit margin and could only shake their heads and leave.

There is no profit margin for 3 yuan, and they are willing to compete for the market of 4 yuan and 5 yuan drinks.

……

When the food delivery war was in full swing, Fantuan suddenly announced that the exclusive contract deduction point had dropped to 10%.

Li Shan, who was sunburned and lost a full [-] catties, faced the media with a firm gaze and said: "The takeaway for a month has allowed me to see another side of the world."

"I've seen cyclists carrying babies on their backs through traffic and sweating up stairs just to survive."

"I see restaurateurs getting up at [-] a.m. to make wontons, all year round."

"I saw lonely elderly people with handicapped legs and feet who only ate takeaway once a day."

"We lowered the point of the platform to save profits to restaurants, riders and users."

"Starting a company is ultimately about making money. We can't be noble enough to lose money in business, but I hope that what we earn is only the service fee we provide."

"I think we're a service industry, not a high-margin, winner-takes-all internet industry."

"Here, I also appeal to friends and merchants to lower the deduction points together, and don't eat all three."

……

Li Shan's original fat image is very similar to an unscrupulous profiteer, and it is difficult to gain trust no matter what he says.

Therefore, he has rarely spoken publicly for fear of backfire.

Luo Xiu is always responsible for the image spokesperson of the enterprise.

Luo Xiu has also brazenly declared that he is responsible for the company's appearance.

Now Li Shan has been taking out food for nearly a month, and he has become darker and thinner, and at the same time, his image has become closer.

Coupled with the gossip news a while ago, people know that the CEO of the [-] billion platform has really been doing takeaway for a month.

It is especially empathetic to say this passage now as a rider.

"As a small restaurant owner, if Fantuan really reduces the deduction point to 10%, I will be the first to sign an exclusive contract."

"I'm a crowdsourced rider. On the surface, the salary is very high, but it's based on 12 hours a day and [-] hours a month."

"Anyway, I'm used to only downloading one app of the same type, and I'm used to ordering food on Fantuan."

"I have to say that the rice ball delivery guy is the most comfortable."

There are also people who sang a different tune and said: "You can empathize with the capitalists? Can you believe what the capitalists say?"

"Anyway, I just listen to his words and watch his actions, and finally see if his words and deeds are consistent."

"It doesn't matter what he thinks, isn't it good for a platform to stand up first and reduce the deduction point? I hope other platforms will follow suit quickly."

……

Li Shan's remarks caused an uproar in the industry.

The food delivery war has been going on for so long, and everyone agrees that subsidies can be done, but the deduction points cannot be reduced.

No matter how many red envelopes are distributed, no matter how much money is lost now, it is only a current loss, which can be earned back slowly after winning the market.

The deduction point has dropped, but it is difficult to go up.

For this industry, the practice of rice balls is simply doing a drastic job.

Moreover, other platforms have major capital injections, which is not as simple as Fantuan's shareholding structure.

People's capital comes in to obtain higher returns and to quickly return to capital.

If you make the profit so low, even if you win the battle in the end, how long will it take to make the money back?
Capital is all about efficiency. If your return here is too slow, people might as well spend money on other industries.

(End of this chapter)