1. The logic of splitting

Here，We first need to make a strict distinction between 188bet Live Casino China and 188bet Live Casino Global。

Before entering China，188bet Live Casino headquarters has learned the lessons of all previous Internet giants - every Internet giant in the past has been unable to defeat local competitors in China without exception。One of the countermeasures taken by 188bet Live Casino is，Separate China area from other areas，Even formed the current structure: 188bet Live Casino Global and 188bet Live Casino China，They did a very thorough job，This is unprecedented。

For example: the two teams are separated，The Chinese team has sole ownership stake；188bet Live Casino’s investors in China are basically from China；The operation team is from China，The entire basic judgment, including some execution, is completed by the Chinese team；Even if the exit mechanism is so extreme that both sides have separate markets。

Why do you want to dismantle it like 188bet Live Casino?

Because everyone knows that 188bet Live Casino is a very magical country，All other regional markets can be put into the same business operation category，But 188bet Live Casino really can’t fit in。

First，The Chinese market is large enough，Self-contained system；Secondly，If the Chinese market is managed and planned uniformly by the global headquarters，188bet Live Casino end, its fate 188bet Live Casino Chinese market is the same as that of Yahoo back then、There won’t be any big difference for eBay – it will definitely be cornered by local competitors。

2. Subsidy for success, subsidy for failure

Show by latest valuation，188bet Live Casino Global’s market capitalization has exceeded US billion，188bet Live Casino China’s latest valuation is approximately US billion。188bet Live Casino China’s valuation is much lower，In fact, it is facing a particularly big problem in the Chinese market，It’s a subsidy。

On the one hand，China’s order volume is very beautiful: ranking among the top five in the world，China occupies four seats。It took four years for the United States to reach its current average monthly order volume，It only took China one year to reach 188bet Live Casino level。Can be ordered although beautiful，The problem of its background cannot be underestimated。

In China，Every Internet industry with subsidies，A phenomenon will inevitably occur in the end: brushing orders。According to insiders，188bet Live Casino’s fraud volume in China reached 20% in 2015，The real fraud rate may be much higher than this level (not verified)。And what investors expect - the rate of brush orders continues to decrease，The number of orders continues to rise - it is still difficult to appear。The only person who was harmed in the order fraud incident was the taker behind，They actually have to pay a higher price。

What phenomenon will we see in this process？Let’s take a look at a set of key data，Two markets，188bet Live Casino Global is valued at US billion in the United States，Looks like a sky-high price，There is actual data support behind it，Its valuation is quite reasonable in a sense。

Why is 188bet Live Casino more reasonable?

188bet Live Casino Global is currently in 300 cities around the world，66 cities have achieved profitability，In other words, almost 20% of cities are profitable，And other cities are on the road to profitability。Profit rates of a group of major cities，includes San Francisco，includes London、Washington、New York、Boston、Paris...the profitability rates of these cities are above 10%。10% is an amazing concept，means every 0 of turnover on the platform，188bet Live Casino Global’s final net profit was 。

For example: San Francisco。This is how San Francisco started out，188bet Live Casino received 0 from customer，This 0 needs to be split into two parts，One copy for the driver，One copy for the 188bet Live Casino platform。Drivers account for 80%，Platform accounts for 20%。When starting this project in San Francisco，The platform subsidizes drivers 35.USD 7，In other words, after every in revenue from the 188bet Live Casino platform，Resupply Driver 35.USD 7。So when it starts to activate this mode，188bet Live Casino equals every 0 in turnover，It needs to be posted15.USD 7，Plus operating expenses。Initially it will post for every 0 received，But this is the beginning。

188bet Live Casino subsidy is no longer available，Its income is basically equal to every 0 of turnover，Just get ，The final operating expenses of these 20 US dollars are about 10 US dollars，Finally it can get a profit of ，That is the source of the 10% I just mentioned。

City 2: London。The situation at the beginning was similar，London’s subsidies are much greater than those of San Francisco。How to fix it in the first place？For the same 0, the driver gets 80，188bet Live Casino gets 20，Then 188bet Live Casino will give it another 。So every order comes out of London，Equivalent to every US0 in taxi fare received，It costs 。Plus the operating expenses of this platform，Let’s look at London’s initial receipt of 0，It needs to make up 111 yuan，You charge 100 yuan，Finally, 111 yuan will be posted。But the same，This subsidy has basically disappeared in London，Finally also obtained a net interest rate of 10%。

Then，What will happen to 188bet Live Casino China？Take Shanghai as an example，For every 0 of initial revenue，Except as per driver 80%、Outside of platform 20% allocation mode，188bet Live Casino also provides crazy subsidies，Supply Driver 9，equal to every 0 of expenses incurred，119 yuan to the driver。Plus operating expenses，Equivalent to 7 for every 0 transaction that occurs。

At present，188bet Live Casino mentioned in its latest financing plan，I hope Shanghai will be like San Francisco in the future、New York、Same as London，No subsidy，Shanghai’s final net profit can also reach 10%，Also，The order volume in Shanghai is very large。But if you do a careful analysis，You will find that this story is not true in China，Why？

3. There is no other way out except merger

China has some unique conditions in the entire taxi-hailing market that are opposite to foreign markets。If you compare the entire 188bet Live Casino cost with the cost of taking a taxi，Without considering subsidies，188bet Live Casino China costs far more than taking a taxi，This situation is exactly the opposite of that abroad。

Once domestic subsidies are removed，The supply of cars will drop sharply。Once the supply side drops sharply，188bet Live Casino’s sharing economy model will definitely not take off。How to bring back the supply side，At the same time, no subsidy is given，There is only one way left，That is to raise the price。But once the price rises，It will further narrow the price difference between 188bet Live Casino and taxis in the Chinese market，This will lead to a sharp drop in demand，So this mode is a seesaw in the end，Unable to balance。

Also，China is a magical country，Because the Chinese market has unique conditions，Once 188bet Live Casino’s price increases，Its opponents will definitely not follow suit，This is a unique competitive condition in the Chinese market，Its opponents will definitely take advantage of this opportunity to suppress 188bet Live Casino’s market share，Therefore, the price may be reduced。

This is an extremely special competitive situation in the Chinese market，What is the competitive situation in the Chinese market，What we usually call “game theory” does not exist in the Chinese market。If you tell this to a group of foreigners，He will say，188bet Live Casino raises this price，Won’t its rivals also follow its lead in raising prices、Follow and make some money？Won’t happen in China market。

The overall competitive structure of the Chinese 188bet Live Casino，Can be defined as "cut-throat competition"，Many 188bet Live Casino participants are irrational。For example: many markets are extremely focused on 188bet Live Casino share No.1’s target。

The method of "cut-throat" competition is:

I cut my throat，Competitors also take a stab at it，Let’s see who has the chance to be sent to the hospital 188bet Live Casino end。

188bet Live Casino is the current competitive situation.

Irrational participants，means if your price increases，Competitors will use 188bet Live Casino opportunity to desperately grab your market share。For example, Yidao’s recent subsidies are more radical than before。Recharge 100 and get 100 cash，Free LeTV mobile phone，Extremely crazy。In the private car market，In fact, the current pattern is very obvious，In addition to continuing to merge，There is no other way out in the end。

Why did we end up like 188bet Live Casino？There is an essential problem here，Any subsidy must eventually produce results，Two prerequisites are required: first，Change behavior；Second，Change stickiness。

What is very interesting is that in the private car market，It has indeed changed user behavior，But there is no stickiness，It’s useless if you burn another 10 billion US dollars。Today a private car company only needs to provide subsidies，And your subsidies are strong，Consumers will follow you。Tomorrow, as long as the opponent’s subsidy is 1 yuan more，Consumers will definitely follow their competitors。So the most critical point in the entire market is 188bet Live Casino issue，Everyone has indeed changed their consumption behavior，But the stickiness of consumers has not changed。More subsidies，The stickiness has not been established yet。In the end, the situation we actually face is: there is no other way out，The only way out is to continue subsidy。

Return to the previous proposition，188bet Live Casino’s global business model is established，The 188bet Live Casino China model is actually difficult to establish。There may be only one mode left: to VC，How to exit may require the magic of China’s capital market。