Why baidu o is the hottest investor to invest 20bi

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Why baidu o2o is bound to lose when it invests 20billion yuan to acquire glutinous rice to push Baidu takeaway release date: Source: Internet editor: litchi browsing times: 993 copyright and disclaimer

core tip: although Baidu company, baidu takeaway and glutinous rice have successively clarified the rumors about the sale of such infringing machines that affect your work, this confusing merger is not groundless. Baidu has a long-standing plan to sell its takeout business

sell or not? In recent days, the future destiny of Baidu takeout has been tossed and turned

[China Packaging News] although Baidu, baidu takeout and glutinous rice have successively clarified the sales rumors, this confusing merger is not out of thin air. Baidu has a long-standing plan to sell its takeout business

sell or not? In recent days, the future destiny of Baidu takeout has been tossed and turned

although Baidu has long been rumored to sell takeout business, this time the rumor is more fierce and seems to be more conclusive

on the late night of September 6, Baidu's official microblog urgently released a statement: Recently, some media reported that Baidu and xinmeida had conducted merger negotiations on glutinous rice and takeaway business. The relevant rumors were inconsistent with the facts, and Baidu had never hired Huaxing capital to conduct merger negotiations

although Baidu company, baidu takeout and glutinous rice have successively clarified the sales rumors, according to Shenzhen, this confusing merger is not out of thin air

first of all, Baidu has a long-standing plan to sell takeout business. Since the beginning of the year, Baidu has been in contact with meituan Dianping for several months. The information obtained by Shenzhen is that the two sides were still negotiating until last week, and it will still take about two months to reach a final deal, that is, the result may be achieved by the end of October

secondly, besides meituan, Baidu has also been in contact with Yiyao and JD. The main reason why meituan Dianping has had a long discussion with Baidu is that Baidu shares after the merger. Baidu hopes to obtain meituan Dianping shares, but meituan Dianping does not want Baidu to have rights in future business

in addition, the news about Baidu's sale of takeout business has been confirmed, but whether glutinous rice is on sale is still unknown

two years ago, the acquisition of nuomi was the beginning of Baidu's comprehensive entry into o2o business. Since then, Baidu has experienced a process from attaching importance to o2o business, increasing investment to finally giving up quietly

Baidu's o2o strategy has not been favored by the outside world. However, under the large investment in the past, does Baidu really have to fail in o2o

potential abandoned children

on September 1, the baidu World Conference was held in China hotel. This is the most important press conference of Baidu every year. At this press conference, Robin Lee, the founder and CEO of Baidu, and the heads of Baidu's important businesses will "go out to meet customers" to tell the outside world about Baidu's thinking on future strategy and the next development priorities

therefore, the baidu World Congress has become a window for the outside world to see Baidu's development strategy, planning and focus. In this window, Robin Lee's statement has attracted particular attention

in his one hour opening speech, Robin Lee focused on artificial intelligence. For Baidu o2o business, only Baidu takeout was mentioned once by Robin Lee due to the spokesperson. Limingyuan, who once shouldered the burden of Baidu o2o, did not even appear in the guest speaker column

this is quite different from the previous attitude: Baidu takeout once pinned on Baidu CEO Robin Lee's dream of breaking through the mobile Internet. In addition to raising Baidu's o2o business to a very high position, the announcement of a heavy investment of 20billion yuan also shows that Baidu executives attach importance to this business

at last year's Baidu World Conference, most of Robin Lee's speech was about o2o business, and even stated that Baidu's primary task was to develop o2o. "In the future, Baidu's o2o business revenue will exceed the search revenue."

the situation is different this year

in an interview in the first half of this year, Robin Lee mentioned his attitude towards o2o business. He was "not completely satisfied" with the results of o2o business, and "if you really can't do it, you won't do it, and you should make a decision."

subsequently, at this year's Baidu World Conference, o2o was completely forgotten by Robin Lee. This year's focus is on artificial intelligence

the only question is whether the transaction subject is Baidu takeout alone or whether takeout and glutinous rice are packaged for sale. Who will the buyer be and how much benefit Baidu will gain from the transaction

enter the site early

blame Robin Lee's hesitant attitude for the poor development of o2o business. It may not be objective for Baidu to enter the site too late. In fact, baidu enters the site no later than Tencent and Alibaba

as early as june2010, hao123 under Baidu launched the "group purchase navigation" function. A year later, "hao123 group purchase navigation" was upgraded to "Baidu group purchase navigation", which gained more attention

in October, 2012, baidu split up maps and set up its own lbs business unit. Before the establishment of the LBS business unit, baidu maps had actually sorted out applications around Baidu and moved closer to the local life field. The number of professional visitors increased by 12.79% year-on-year

after the establishment of LBS business unit, baidu maps has added various life service functions: in addition to integrating group purchase, hotel reservation and other services into the map, it also accessed didi taxi (now renamed didi) application in April, 2013 to provide taxi. In June, 2013, it can support movie seat selection and ticket purchase

after this adjustment, baidu maps, an application with many users, has become an important carrier of Baidu o2o business

it can be seen from various actions that Baidu entered o2o not too late. However, from the perspective of business layout, baidu did not really launch o2o business in the early stage. It was more as an information intermediary. Compared with o2o companies such as meituan, public comment, and hand in hand at that time, Baidu lacked control over upstream resources. Using maps as the support of o2o business, it was also difficult to generate independent brand effect and obtain a larger customer base

in 2013, baidu group buying began to evolve from simple information navigation to downstream, and launched self operated group buying business. However, in the market competition at that time, Baidu's self operated group purchase business market awareness was not high, and its competitive advantage was not obvious. In order to promote the development of o2o business, baidu started the second round of expansion with the help of capital means


acquisition and investment

acquisition of glutinous rice is a sign that Baidu's o2o business has entered the second stage

in August, 2013, baidu announced that it had made a strategic investment of US $160million in nuomi, obtained about 59% of the shares, and became the largest shareholder of nuomi. In january2014, baidu announced the acquisition of all the glutinous rice shares held by Renren. According to the agreement, Baidu will become the single wholly-owned major shareholder of nuomi after the completion of the transaction. In March, nuomi was officially renamed Baidu nuomi

on March 7 of that year, Baidu nuomi launched the "37 girls' Day", which achieved good results. The "37 girls' Day", which continues the idea of subsidy war, produced a beautiful data report card for Baidu nuomi. It is said that this report card enhanced Robin Lee's confidence in o2o business, which enabled Baidu nuomi to obtain more resource support

later, Robin Lee began to provide o2o service platform in person, and repeatedly revealed Baidu's determination in o2o service. In the middle of 2014, baidu takeout was officially launched. So far, Baidu has started a comprehensive duel with meituan, public comment and hungry Yao in the fields of group purchase and takeout

on June 30, 2015, Robin Lee, who had rarely attended the press conference, unexpectedly appeared at the baidu glutinous rice "member +" strategy press conference, and made the bold statement that "Baidu still has more than 50 billion yuan in cash in its account, so we should take 20billion yuan to make the glutinous rice well". At the baidu World Conference in the same year, Robin Lee's statement that "the primary task is to develop o2o business" once again emphasized the position of o2o business to Baidu

Zeng Liang, vice president of Baidu and general manager of Baidu nuomi, disclosed his goal in an interview in 2015: surpass reviews within the year and surpass meituan within the two years

however, the situation took a sharp turn in October that year. On october8,2015, meituan and Dianping jointly issued a statement, officially announcing the strategic cooperation. The two sides have jointly established a new company, which will become a leading platform in China's o2o field

at that time, in the face of the outcome of the merger of meituan and Dianping, Baidu nuomi was still in the mood to joke about "Baidu nuomi completed the second KPI of the group purchase industry in advance", and said that it was "fortunate to facilitate the merger of competitors". However, after the merger of industry No. 1 and industry No. 2, they have occupied the vast majority of the group purchase market and obtained an absolute leading edge in o2o business. Compared with Baidu, there is a wide gap in the strength of glutinous rice

under the situation that industry first and industry second join hands to suppress competitors, if you want to break through, it means that glutinous rice needs more investment. Not only group buying, but also meituan takeout and hungry are exerting pressure on Baidu takeout

changes in the industry structure have made Baidu's o2o business almost lose the hope of competing for the first place in the industry. At the same time, with the arrival of the capital winter, the top management of Baidu has wavered on whether to continue to invest heavily in o2o, and the market offensive of Baidu glutinous rice and Baidu takeout also tends to be conservative

since the second half of last year, the subsidies for Baidu's glutinous rice, takeout and other businesses have been significantly reduced. Although there is a bold suggestion of 20billion yuan, according to Zeng Liang, only half of this money has been spent by the first half of this year, of which more than 2billion yuan has been set up in the glutinous rice film fund

in the campaign to occupy o2o, baidu resources did not play an obvious role in driving o2o

2014, limingyuan, vice president of Baidu, grandly launched the direct number at the baidu world conference that year, but the effect was not ideal. The 51 cars, Uber China and Tiantian cars invested by Baidu have limited synergy. In fact, the fate of these companies is hard to say

it is too late to fully invest in o2o business, which determines that Baidu glutinous rice and takeout are at a disadvantage in the competition. However, according to the investigation of Shenzhen (No.: Shenwang), internal mechanism problems are also an important reason for the poor development of Baidu takeout

path dependence

Baidu, which started with search, is a typical technology-oriented company. The initial technology content of o2o business is limited. In order to develop this business, baidu turned to the existing sales system for help

Ditui is the moat in the early development stage of o2o company

generally speaking, o2o companies need to rely on a strong local promotion team to build business barriers at the initial stage, especially in the two sub industries of group purchase and takeout. Local promotion is the most effective way to expand the market, which has no innovation

for this reason, meituan and hungry Yao have built their own local push army. Gan Jiawei, who was recruited by meituan CEO Wang Xing from Ali, once made meituan's huge street sweeping team manage in a refined and standardized way. Since then, meituan has changed from a reckless operation to a field army operation. Shen Peng, who joined meituan as the second salesperson, has carried the whole local push team of meituan's takeout; In the early days of entrepreneurship, half of the 400 person team were local promoters

the later Baidu takeout did not adopt the strategy of its predecessors. In Ditui, baidu adopts the self operation + agency model

in the third and fourth tier cities, baidu takeout's land promotion strategy is to assign offline land promotion work in multiple cities to local agents, and Baidu takeout will provide brands for agents

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