Another word to summarize the behavior of Internet companies to kill into the O2O industry, that is - burning money! In this battle from Online to Offline, from the beginning of the year to the end of the year, are often hundreds of millions of dollars, more than a billion dollars of investment, burning money more and more intense. In taxi, group buying, e-commerce, payment and so on almost all Internet areas, O2O has become the mantra of everyone. Today we will talk about, BAT and other these companies are how to burn money in the field of O2O.
1, Alibaba: strategic importance, tactical penetration
Ambition index: ★★★★ ☆
Expansion: e-commerce, taxi, maps, logistics, etc.
Burning money amount: close to 6 billion dollars
Alibaba this year's O2O strategy is mainly divided into two major aspects, that is, their own in the field of e-commerce and payment to build a more extensive service experience, to realize the closed-loop experience of users, merchants online and offline. In this regard, Ali's thinking is to maximize the advantages, from online to offline, to build a perfect O2O ecosystem. Therefore, at the beginning of 2014, Alibaba formed the O2O business group and announced the O2O strategy concept of "thousands of troops and horses" and "four passes and eight reaches". In Alibaba's internal project kick-off meeting, it was clearly proposed that O2O would be elevated to the strategic level of the group. In addition, including 5.37 billion Hong Kong dollars into the Yintai, through the online and online business infrastructure system, etc., are to further improve their own e-commerce in the field of dominant position.
On the other hand, it is seeking to build a perfect O2O ecosystem by extending its tentacles to its own shortcomings, such as taxi, maps and local life services, through investment and acquisition. According to industry analysts, BAT three actually in the field of O2O have their own disadvantages, Tencent lack of maps, Ali lack of entrance, Baidu lack of payment, the three will be based on their own shortcomings to choose to invest in the acquisition of the object.
In addition, Alibaba and its related O2O field companies, but also by virtue of the capital advantage, in the emerging field attempts to take the lead. For example, Ali invested in Taodotou, launched a new mobile food service platform.
Overall, Alibaba in the field of O2O strategy is to continue to consolidate their own e-commerce system under the online and offline services, including shopping, payment, logistics and other content, to open up the gap with the second; in addition to the lack of entrance to the mobile terminal, Alibaba spared no expense acquisition of the entrance-level products to make up for the shortcomings and rivals to compete with each other, and in the field of the new O2O, it seems that Alibaba is still in the The state of exploration.
2. Tencent: aiming at O2O wild money
Ambition index: ★★★★
Expansion scope: local life services, taxi, e-commerce, medical care and so on
Burning money amount: more than 2.5 billion U.S. dollars
With Ali's build a wider range of O2O system is different, Tencent seems to be more targeted and focused on O2O but don't belittle Tencent's ambition in the O2O industry, Tencent's execution in 2014 is very strong, in the road of bad O2O, not hesitate to smash heavy investment in the O2O vertical field of the leader of the public comment, drop taxi, 58 Tongcheng and other companies, these services in the WeChat platform to realize the perfect migration, pinning hopes on the vertical field of the leading position. For example, in WeChat's tiny nine-panel grid, three seats are occupied by DDT Taxi, Movie Tickets and Today's Food, which have significant O2O attributes, with both DDT Taxi and Today's Food (Dianping) being Tencent-invested projects.
In addition, Tencent's strategy in O2O has a tendency to curb rival Alibaba. For example, Alibaba announced in April 2014 after the wholly-owned holding of Gaode map, less than a month, Tencent then 1,173.3 million Hong Kong dollars (about 189 million U.S. dollars) into the thinking of the map for the defense; in August 2014, in Alibaba and the shares of Yintai less than half a year, Tencent and Baidu with Wanda to build a joint e-commerce platform, but also in March this year to spend hundreds of millions of dollars will be the Jingdong into their own allies.
Observer Lu Zhenwang said Tencent wants to use WeChat as an O2O portal, and must look for partners through capital. So, Tencent in the way of O2O, the way to take is "can buy, buy". The speed of mergers and acquisitions in a sudden rainstorm, so that the entire Internet circle and the investment community to shame.
Tencent's overall thinking on O2O is to build a more vertical and perfect service system for O2O around WeChat and Mobile QQ, pouring all its efforts into the O2O vertical to quickly occupy the strategic high ground, launching a tit-for-tat competition with rivals on its own short boards and encouraging the development of start-up O2O enterprises to expand into new areas. For example, the "Eat, Drink and Play" function launched on Mobile QQ. As well as the concept of "connecting everything" previously proposed by Tencent, this will have a huge impact on the layout of O2O for the entire Tencent system. In addition, Tencent also encourages the Tencent system of companies for acquisition and expansion, realize the indirect investment layout, such as the public review has invested in hungry, Maiwaidi, etc., have Tencent's figure emerges.
3. Baidu: a mind to do platform
Ambition index: ★★★★
Expansion scope: travel, taxi,
Burning amount: more than 1 billion U.S. dollars
Baidu as the BAT in the field of O2O action amplitude of the smallest Internet company, in 2014, its mind is still mainly spent in the original platform model under.
Baidu, as the smallest Internet company in the O2O field among the BATs, still spent most of its thoughts in 2014 under the original platform model. Baidu hopes to integrate its own products, such as Baidu Direct, Baidu Nuomi, Mobile Baidu, Baidu Maps and Baidu Wallet, this strategy is very rational, but it seems that Baidu's ambitions in O2O seem to be far from Alibaba and Tencent. Baidu over the past year in the hottest O2O field of action, found that its biggest behavior from the investment in Uber, and this is just for Tencent and Baidu in this field of a passive defense only.
Baidu's strategy in the field of O2O in 2014 is to build a perfect O2O system by integrating its advantageous products through online and offline in the case of strengthening the platform advantage. For example, many products are platform-level, including the newly launched Baidu Direct, the acquisition of Baidu Nuomi and its own mobile Baidu and Go.
4. millet: dedicated to VC365 days
Ambition index: ★★★★
Expansion scope: furniture, maps, housekeeping, rentals, etc.
Burning money amount: $300 million
2014 O2O field is difficult to see the figure of millet, you think it ignored it? In fact, the long-sleeved Lei Busi, is using its Shunwei Capital to play the role of VC, specializing in investment. We are familiar with the Shunwei capital in millet under a number of rounds of financing played an important role, but in fact in the O2O industry, Lei Jun also rely on Shunwei invested in many O2O startups.
From the point of view of Xiaomi's moves in the O2O industry over the past year, its $300 million burn rate is not excessive, and it also gave two-thirds of it to Midea to do smart home and e-commerce. In the more vertical O2O field, Xiaomi and Lei Jun's thinking is the VC way, specializing in finding money for startups.
5. Shanda: leaning into the O2O vertical
Ambition index: ★★★★☆
Expansion scope: catering, home management, group buying, travel, etc.
Burning money amount: more than 600 million dollars (3.65 billion yuan free advertising + 50 million U.S. dollars in investment)
Shanda, as the earliest successful Internet company in China. In 2014 has completely divested the game business, Shanda's two brothers Chen Tianqiao and Chen Dainian responsible for different content, the older brother to do investment, the younger brother to engage in industry. In the past year, among the investments in the field of O2O, you can see the busy figure of Shanda Capital, laying out various vertical O2O industries such as wealth management, travel, and housekeeping. Similar to Xiaomi's Shunwei Capital, Shanda Capital also plays the role of VC.
In addition, it is worth noting that Chen Dainian, who is an industrialist, announced in December that his product, WiFi Master Key, would kill the O2O industry, and announced that it would provide 3.65 billion yuan of services for the O2O industry for free, and that in the group-buying coupon, catering, hotels, and other vertical O2O fields, Shanda's products would provide traffic and data support, compared with Alibaba's multi-point investment and acquisition for integration. The strategy is different, Shanda is similar to Tencent, more focused on the O2O service field. And the biggest money-burning project from one of its tools products, the amount is close to 600 million dollars, from which you can see the importance of O2O in the eyes of the grand.
Shanda seems to have followed the Xiaomi + Baidu model in O2O over the past year, focusing on investing in the verticalized O2O industry and actively integrating its existing resources, leveraging the platform advantages it has already established to power the O2O industry.