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:
- Luckin Coffee
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.