Zhulu.com news from the afternoon of June 15th，According to Bloomberg，Informed sources disclosed，Alibaba and Tencent-backed 188bet app plans to raise at least .5 billion at a valuation of billion to billion，Participating in this round of financing include new investors and existing investors，The valuation has doubled compared with the merger of the two companies in February this year。

Why is Didi Kuaidi afraid of 188bet app?

We know that Tencent and Alibaba are behind 188bet app’s first round of money-burning war，Both companies found that taxi-hailing software is an excellent platform for popularizing mobile payment，During this process, taxi-hailing apps are still in the stage of grabbing market share，User consumption habits and behaviors also need to be cultivated，Subsidy is a good shortcut to continue to retain users。

Spurred by the price subsidy war，Rapid growth of mobile taxi 188bet app，But with the popularization of taxi-hailing software, the historical mission of mobile payment has been completed，Even super giants like Alibaba and Tencent，I am not willing to invest more money to continue a money-burning war with no end in sight。Then the two mergers that we know about happened。

At the time of merging，At that time, the two companies claimed that their market share reached 90% in terms of user coverage data，Basically monopolized the market。However, the wall cabinet is，With the reduction of subsidies，The number of its users has gradually returned to rationality。At the same time, the number of 188bet app users who are still subsidizing has surged。Latest data display，Didi Kuaidi’s combined market share has dropped to 78%。

188bet app launches a more down-to-earth and cheaper People’s 188bet app in China，This quickly disrupted Didi’s rhythm。For Didi Kuaidi，The scary thing is not that 188bet app disrupts the market by lowering prices，But its own destructive innovative energy。

We know the “broadcast + order grabbing” model that is different from Didi Kuaishou，188bet app only assigns drivers to passengers，This avoids the waste of resources caused by order grabbing and the driver's refusal to accept short-distance orders。What’s more important，188bet app’s dynamic system can rely on data and algorithms，Convert regional supply and demand relationships into price leverage in real time，Trigger the market’s automatic adjustment ability。

This kind of innovation allows 188bet app to invest all the idle transportation capacity in society into the travel market，Improve the efficiency of the entire society。Didi Kuaishou is currently just a supplementary tool to change the taxi market under the premise of insufficient transportation capacity，Titanium Media’s previous article said:

188bet app is at best a large taxi company，Just a traditional taxi company phone system，He just uses the Internet system。Didi Private Car also uses the order grabbing mode，In other words, they just turned low-end taxis into higher-end private cars。The essential business logic remains unchanged。

A new round of money-burning war is about to begin

Not long ago, 188bet app officially disclosed a Chinese market operation data and investment plan，The number of orders received by 188bet app drivers on this market every day is approaching 1 million。This number，Almost as much as 188bet app’s global business volume 6 months ago。188bet app CEO Travis Kalanick said，If it reaches the end of 2015，China is likely to replace the United States as 188bet app’s largest market，

Although the figure of 1 million daily orders has been questioned，But the rapidly growing Chinese market is still crucial for 188bet app as it expands its footprint around the world。Based on this，188bet app currently invests a lot of resources in the Chinese market，Aiming to enter this most challenging market。

Written in an 188bet app in the New York Times:

In order to expand the Chinese market as soon as possible，188bet app spares no expense，The subsidy they pay to the driver even exceeds the fare itself。The red envelopes issued by this company can sometimes be as much as three times the fare，They hope to copy the rapid growth of the US market to China...This high subsidy has attracted many drivers to join 188bet app’s camp。

So regardless of whether Didi Kuaidi’s financing incident is a fiction or not，188bet app’s high subsidies in order to gain a foothold in the Chinese market have put strong pressure on Didi Kuaidi。188bet app, with billion in venture capital, has enough confidence to stage a long-term battle with Didi Kuaishou，For Didi Kuais investors who were unable to bear the money-burning war，It seems like we have fallen into a new quagmire。

May 22，Cheng Wei, CEO of 188bet app, announced，Launched the “Free Express Train for All” campaign in 12 cities across the country。Within the next month，Beijing、Tianjin、Hangzhou、Guangzhou、Shenzhen、Chengdu、Wuhan、Chongqing、Nanjing、Changsha、All passengers from Dalian and Xi’an，Free ride on Didi Express every Monday，Each passenger will receive two RMB 15 free rides per day。

The purpose of launching this activity is self-evident，Didi Kuaidi hopes to retain users through higher subsidies，Hindering the rise of 188bet app。If the news of raising US.5 billion this time is true，Think back to the recent news that 188bet app will raise billion on June 22nd，The two sides are bound to launch a larger-scale money-burning war。

Where 188bet app the users who were robbed with money go?

After several years of 188bet app education，Ride-hailing software has basically covered all users who need to take a ride in first- and second-tier cities，At this time, it is actually difficult to expand the base of taxi users through subsidies。In addition，Now it seems，The subsidy does not make users highly dependent on the platform。

An anonymous NetEase middle-level manager told me，He is always swinging between Didi and 188bet app，Which store will give him coupons，Which platform is cheaper，He will take a taxi with anyone。

Users under the temptation of high subsidies are becoming more and more savvy，Written in a report，Driven by capital’s willingness to spend money，Everyone keeps reading the list，Passengers want to get "cheap"，The driver wants to grab the "fat job"。Once capital operations lose necessary supervision，His crazy pursuit of profit will turn him into a wild horse，Disturbing normal social life and people’s livelihood。(188bet app’s controversies and policy risks will not be discussed in this article for the time being)

In the US market，188bet app makes money from private car owners、Commissions from rental companies and taxi companies。But in China，188bet app mode cannot be copied，In the eyes of regulators，If the 188bet app model is implemented in China，It just legalizes black cars。——China’s taxi-hailing software may need to find a new business model。

The current money-burning war，It has evolved into a fact to some extent，188bet app hopes to quickly open up the Chinese market through high subsidies，Didi Kuaidi had to follow suit in order to curb 188bet app。It’s a last resort for 188bet app，For Didi Kuaidi，The gain outweighs the loss。

The huge demand is still unmet，The future 188bet app may not be dominated by one company，There is still a lot of room for segmentation and regional markets。The current taxi 188bet app is a bit like the group buying back then，As first- and second-tier cities become increasingly saturated，In fact, sinking to third- and fourth-tier cities may actually find a new way out。