Can Luckin, Mobike, Didi or WeWork Be Profitable? (Jeff’s Asia Tech Class 6)

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:

Concepts for this class:

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

Companies for this class:

  • Mobike
  • Didi
  • Luckin Coffee

———-

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

Please join my executive education course on China’s tech leaders and Asian digital competition. There is a 30-day free trial.

  • This online class offers:
    • A weekly lecture you can listen to as a podcast at the gym or in the car or wherever.
    • A weekly article with more in-depth material.
    • 2-3 weekly updates on what’s happening digital China / Asia.
  • This class requires only 90 minutes per week which can be done mostly via a podcast available at iTunes and Himalaya.

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