In this class, we discuss Didi, Luckin and Mobike and how to predict if they will be profitable.

Exercise for this class:

• For Mobike, Luckin or Didi, think about the following two aspects.
  • Consumer view: What do they care about? What is their journey for buying and using?
  • Competitor: Could a well-funded, well-run competitor take 10-20% of their business? Five forces and competitive advantage are useful here.
  • Digital economics: Do any of the following really change their business? Or your answers to the above?
    • Zero marginal cost of production
    • Non-rival goods. Can be used by multiple customers simultaneously.
    • Durable vs. consumed as a product or service.
    • Low or zero distribution costs. Does it have global reach?
• Now make a decision: Will this business be profitable? Will the unit economics be positive eventually? 
  • Write 3 paragraphs with your answer. Do it on your smartphone. Or a PC. Or a piece of paper (take a picture and save it).

Articles cited in this class:

• An Introduction to the Sexy but Dangerous Economics of Digital
• From Didi to Mobike to Luckin: How Money and Hype Are Distorting Digital China

Concepts for this class:

• Money Wars
• Blitzscaling vs. Fastscaling
• Irrational Competition
• Digital and Information Economics

Companies for this class:

• Mobike
• Didi
• Luckin Coffee

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I write and speak about digital China and Asia’s latest tech trends.

I also teach Jeff’s Asia Tech Class, an online course and daily commentary for busy executives on Asia tech and China’s digital leaders.

• My online class offers:
  • Deeper insights into workings of the tech giants of China and Asia.
  • Executive training in the strategies and tactics of advanced digital strategy.
  • A unique view from the ground – and behind the scenes – of digital China.
• And the class is condensed to just 70 minutes a week – so even very busy executives can do it.