Stronger by Paying Salaries and I Have 1 Billion Employees

”Robin, first of all, the legality of such an agreement is questionable. Secondly, what’s to stop a new ride-hailing app from popping up after Fast Taxi and DiDi Dache end their subsidy war?”

Liu Zhiping retorted.

The best way to resolve the conflict was a merger. He knew it, and Li Yanhong knew it too.

Both were playing dumb, waiting for the other to bring it up first.

”So, President Liu, are you suggesting we keep burning through money at the current rate of 1.2 billion Hua Yuan a month?” Li Yanhong asked.

”President Li, you need to understand something: Chen Yansen is Fast Taxi’s majority shareholder.” Liu Zhiping didn’t take the bait, tossing the ball back into his court.

Seeing that he wasn’t taking the bait, Li Yanhong paused for a dozen seconds or so before giving a wry smile. ”President Liu, are you trying to broker a merger between Fast Taxi and DiDi? Is this Mr. Ma’s idea, or Chen Yansen’s?”

’If this was Chen Yansen’s idea, and he was on board, the subsidy war in the ride-hailing industry could finally end.’

”It’s what Mr. Ma and I are thinking. I can’t guarantee President Chen will agree. Of course, if DiDi Dache’s valuation is reasonable enough, I imagine Chen Yansen wouldn’t refuse a merger.”

Liu Zhiping said calmly.

The implication was clear: if Li Yanhong was willing to take a major hit, he would go talk to Chen Yansen.

”DiDi Dache raised 1.2 billion in its Series E funding, for a valuation of 8 billion.” Li Yanhong understood what Liu Zhiping was implying. His expression darkened, and he spoke with narrowed eyes.

’I have no problem with a merger!’

’But Chen Yansen can’t just push us around. I won’t budge a single cent from that 8 billion Hua Yuan valuation!’

”President Li, DiDi Dache’s valuation is overinflated. Half of that value was just burned through on subsidies.”

Liu Zhiping frowned, his expression displeased. ’Li Yanhong just doesn’t get it,’ he thought, cursing inwardly.

’Half?’

’They want to slash the valuation by 4 billion? Just like that?’

Li Yanhong gasped, a wave of fury rising within him.

The 1.2 billion Hua Yuan for DiDi Dache’s Series E funding was a solo follow-on investment from Qian Du Network. Including the 80 million from Series D, 100 million from Series C, and 30 million from Series B—and not even counting investments in manpower and traffic—the total capital invested was 1.41 billion Hua Yuan.

’Qian Du Network’s stake is 44.4%. At a 4 billion valuation, we’d only cash out 1.76 billion. After all that work for half a year, we’d only make a profit of 300 million?’

Li Yanhong was furious.

”President Liu, that offer is completely insincere. If Penguin and Senlian Capital want to keep this war going, Qian Du will see it through to the bitter end.” Li Yanhong’s face was cold, a ruthless glint in his eyes.

’Worst case, we’ll just pour in more money and keep fighting Fast Taxi!’

Liu Zhiping snorted. ”That’s Chen Yansen’s offer,” he said bluntly. ”Robin, the losing side needs to accept its position.”

”Has DiDi Dache lost? I don’t think so!”

With that, Li Yanhong furiously hung up.

”He doesn’t get it, can’t see the big picture. Robin is a decent technician, but his management is a total disaster. In all these years, besides search and its online forums, Qian Du hasn’t released a single decent product.”

The corners of Ma Wenteng’s mouth turned down in contempt. He then lifted his teacup, took a slow sip, and offered his detached evaluation.

”I’ll call President Chen back, then.”

Liu Zhiping said.

Ma Wenteng nodded in agreement.

Liu Zhiping picked up his phone and called Chen Yansen. ”Li Yanhong refused.”

”He wants to surrender, but he also wants to save face and make a profit on the side. And he’s not even willing to lower his price? In his dreams! I get it, President Liu. Thanks.” Chen Yansen’s tone was exasperated.

’If Qian Du doesn’t inject more capital, DiDi Dache’s market share will drop below 10% in another two weeks. Maybe then Li Yanhong will face reality.’

’And if Li Yanhong does decide to throw more money at it? Fine. We’ll fight for another month.’

’He’d already spoken with Penguin, Ah Li, Goldman Sachs, DST, and Huake. They could launch a Series C funding round at a moment’s notice.’

’How could Qian Du Network, fighting all alone, possibly compete with a coalition of internet giants, state-owned funds, and foreign capital?’

「At the same time.」

Cheng Wei, the man Li Yanhong had kicked to the curb, was having the moment of his life. IDG Capital was leading the investment, with Redwood Capital and Siwei Capital following, securing 300 million Hua Yuan in Series A funding for his new venture, DiDi Bike.

He had instantly become the leader of the bike-sharing industry!