Stronger by Paying Salaries and I Have 1 Billion Employees

Chen Yansen plopped onto the sofa and demanded in a cold voice.

It was standard practice for internet giants to hedge their bets by investing in two or three companies within the same sector, something Chen Yansen could understand.

But when Pei Yi had approached Juhuasuan seeking a partnership, Ah Li had consistently stalled, treating Kuai Pao like a rival. So how could Chen Yansen possibly show Lao Ma any courtesy?

’You don’t want to play with me? Fine, I can’t be bothered with you either!’

Kuai Pao was well-established in the Group Buy, takeout, and grocery delivery sectors, with over six million orders and a daily transaction volume of one hundred million Hua Yuan. It was by no means short of investors.

”President Chen, there must be some misunderstanding. I’ll personally look into it and make sure it’s resolved immediately,” Ma Liyun said evasively.

”That won’t be necessary. Unlike Meituan, Dianping, and Lashou Network, Kuai Pao isn’t heavily dependent on Juhuasuan,” Chen Yansen refused flatly.

Ma Liyun was visibly unsettled by the sharp retort. His face darkened as he asked, ”Is President Chen trying to kick Ah Li out of the game?”

Chen Yansen was noncommittal. ”Isn’t it Ah Li that’s trying to suppress Kuai Pao?”

Ma Liyun grew awkward, his true intentions laid bare. He had thought a few simple words would be enough to smooth things over, but Chen Yansen wasn’t giving him an inch.

”President Chen, Ah Li has no intention of suppressing Kuai Pao. I can assure you of that,” Ma Liyun replied.

He paused before adding, ”Juhuasuan’s recent partnership adjustments were purely normal decisions based on our platform’s strategic planning and business priorities. They weren’t directed at anyone. If President Chen is willing, I can arrange for our teams to have an in-depth discussion anytime, to explore how we can share resources for mutual benefit in the Group Buy and takeout sectors.”

”Then what about Taobao Delivery? Is Mr. Ma giving up on it?” Chen Yansen pressed.

”There are only six hundred million internet users in the country. Once we hit the traffic ceiling, the cost and difficulty of acquiring new users will increase exponentially. Ah Li needs to round out its business ecosystem. We can use the high-frequency purchasing of food delivery to increase user stickiness and retention. If Pinbei can do it, why can’t Ah Li?” Ma Liyun said frankly.

”Actually, Ah Li could just integrate Kuai Pao into the Taobao app. You want an O2O ecosystem, and I’ll handle the operations. Wouldn’t that be a win-win for everyone?” Chen Yansen said with shameless audacity.

’The nerve!’

’Does this kid have no shame?’

’Ah Li only holds a 4% stake in Kuai Pao. What makes you think I’d give you a top-level traffic entry point on the Taobao app?’

”I’d love to agree, but the other shareholders would never go for it,” Ma Liyun replied, tactfully deflecting.

”If Ah Li goes all-in on the takeout and Group Buy sectors to compete head-to-head with Kuai Pao, has Mr. Ma considered how much money you’d have to burn to capture just 20% of the market? If that same money were invested in Kuai Pao instead, wouldn’t the returns be much higher?” Chen Yansen reasoned.

”A 4% equity stake isn’t enough to convince the other shareholders,” Ma Liyun said after a moment of thought.

Ah Li was a powerhouse, but Senlian Capital was not to be underestimated. In the ride-hailing industry, they had managed to completely suppress Qian Du.

Lao Ma knew full well that an all-out war with Senlian Capital would mean a monthly cash burn of no less than three hundred million. That was nearly two billion in half a year.

It wasn’t that Ah Li couldn’t afford it, but what would be the point?

”I can promise you that in Kuai Pao’s Series B and C funding rounds, Ah Li will be given the option to acquire at least a 5% stake in each round,” Chen Yansen said, laying his cards on the table.

”And if I don’t agree, does that mean Ah Li is barred from Kuai Pao’s Series B round?” Ma Liyun asked.

”Yes. And I will raise five billion in capital to fight Ah Li to the bitter end. Friend or foe, Mr. Ma—the choice is yours.”

Chen Yansen replied, his expression grave.

’Five billion?’

Ma Liyun was taken aback. For the first time, he truly felt how serious Chen Yansen was about the O2O space. He then replied, ”Give me two days.”

”No problem,” Chen Yansen readily agreed.

’He was just taking a shot in the dark, trying his luck.’

’What if he could actually bluff Lao Ma?’

After all, Ah Li was currently preparing for its IPO. Whether it would be willing to get into a deathmatch with Senlian Capital was anyone’s guess.

Three minutes later, Chen Yansen hung up the phone.

The domestic market was huge, but the competition was even fiercer.

’If Lao Ma couldn’t see the writing on the wall, then he’d just have to be taught a painful lesson.’

Far away in Hang City, Ma Liyun leaned back in his executive chair, lost in thought for a long while. He then summoned Lu Zhaoxi, Zhang Yong, and Tang Yongbo, and sent a video conference invitation to Cai Xin in Hong Kong Island.

”That’s the gist of it. Chen Yansen seems to place a great deal of importance on local lifestyle services like takeout and Group Buy. So, what should Ah Li’s move be?”

After explaining the situation, Ma Liyun spread his hands and asked for their opinions.

”From a cost-benefit, ecosystem synergy, and competitive landscape perspective, acquiring Meituan is the optimal strategy right now. It would be a quick ticket into the Group Buy and takeout markets. Pan-Atlantic Capital’s one hundred million US Dollars will only keep Meituan afloat for a few more months. Besides, Wang Xin is already thinking of selling the company. We might as well wait a bit longer.”

Cai Xin was the first to state his position. With his background in investment banking, his focus was primarily on ecosystem synergy. Acquiring Meituan would allow them to integrate it into the group’s local lifestyle division. This would, for one, prevent redundant investment, and for another, shore up their ecosystem’s weak points, achieving a strategic value where one plus one is greater than two.

Of course, the even better choice would be to take a controlling stake in Kuai Pao, but Chen Yansen would never agree to that.

”Meituan’s Group Buy business is in steady decline. While its takeout business has seen some success, daily orders are under 100,000. It can’t compare to Kuai Pao in terms of logistics capacity, dispatch algorithms, or merchant resources. The price is low, but so is the value.”

Ma Liyun’s words were harsh, painting Meituan as utterly worthless.

But then again, Wang Xin had been a real piece of work, leading Lao Ma on for a ride.

Zhang Yong and Tang Yongbo exchanged a look, instantly understanding their boss’s true intentions.

Tang Yongbo gave a bitter smile. Taobao Delivery had only been online for a few months, and now it seemed destined to face the same tragic fate as Koubei Network.

Lu Zhaoxi sat to one side, saying nothing.

’Kuai Pao is good,’ he thought, ’but it’s not their own flesh and blood. How much was Chen Yansen really willing to concede?’

’But if they were to burn five billion competing with Senlian Capital, there was no guarantee Ah Li would come out on top.’

’Besides, if such a massive investment were to fail, it wouldn’t just drain Ah Li’s cash flow; it could also jeopardize the group’s IPO.’

’Rather than a mutually destructive war, it would be better to change tactics. A capital partnership in exchange for long-term, mutual benefits might even allow them to carve out a larger slice of the market pie.’

”Mr. Ma, what percentage of equity is Chen Yansen willing to offer?” Lu Zhaoxi asked quietly.

”A minimum of 5% per round,” Ma Liyun replied.

”10% would be more like it,” said Cai Xin from the video screen, pushing up his glasses.

”It’s not out of the question. Chen Yansen probably doesn’t want a head-on-head with Ah Li either. 5% is just his opening bid, not his final offer.”

Zhang Yong chimed in.

The group launched into a heated back-and-forth discussion.

...

...

「Yanjing. Meituan Headquarters Building.」

Wang Xin stared at the data for their takeout business, silent for a long time. Ever since the wave of negative press before the New Year, the heat on Meituan Takeout hadn’t died down. Now, the service was synonymous with being ”dirty, messy, and low-quality.”

Daily orders had plummeted to just over fifty thousand. It was hard to believe this was the total volume for the entire North China and Northeast regions combined.

Most of their part-time delivery drivers had jumped ship to Qian Du Delivery and Kuai Pao Delivery.

Looking at the results alone, Meituan’s foray into the takeout market had been a disastrous move.

”Old Wang, let’s scale back the takeout business. Save our ammunition for Group Buy. We need to stabilize our foundation first.”

After a long silence, Wang Xin raised a hand and spoke to Wang Huiwen.

What he hadn’t expected was that just as he was giving up on takeout, Zhang Tao of Dianping had assembled a team in Hu City and officially launched his own takeout service.

Fifteen Hua Yuan off for new users, and a daily random coupon worth five to eight Hua Yuan for existing users.

After Meituan and Qian Du, yet another company had entered the food delivery industry.

Pei Yi cursed under his breath and immediately rose to the challenge. He adjusted the subsidy policies for new and existing customers while simultaneously poaching drivers from Dianping’s delivery team.

’First, cripple Dianping’s delivery network!’

’Dumbass!’ Wang Xin cursed silently when he heard the news.

’In the 2013 food delivery industry, you couldn’t get anywhere without money.’

’The more Zhang Tao struggled, the faster he’d die.’