Image source @ Visual China
Text | Phoenix.com Technology
Core Tips:
1. More than ten years after its establishment, Tuhu Car is still in a state of loss, from 2019 to September 30, 2021, Tuhu Car has lost a total of nearly 11.8 billion yuan.
2. In ten years, Tuhu Has obtained a total of 16 rounds of financing, including Qiming Venture Capital, Junlian Capital, Joy Capital, Baidu, Tencent, etc.
3. Tuhu Has more than 3,300 workshop stores and more than 33,000 cooperative stores nationwide, accounting for more than 90% of the cooperative stores. According to many users, the level of Tuhu's cooperative franchise stores is uneven, and some of the skilled workers in the store are newly graduated students and lack maintenance experience.
4. According to tuhu's prospectus, if the company fails to attract and retain new customers in a cost-effective manner and increase the participation of existing customers on the company's platform, the company's business and operating results may be adversely affected.
Tuhu, the "Haidilao" in the car repair industry, has also embarked on the road to Hong Kong listing.
On January 24, Tuhu Auto submitted a prospectus to the Hong Kong Stock Exchange, and the co-sponsors were Goldman Sachs, CICC, Bank of America Securities and UBS Group.
More than a decade after its establishment, Tuhu Car is still in a state of loss, from 2019 to September 30, 2021, Tuhu Car lost a total of nearly 11.8 billion yuan.
According to industry analysts, Tuhu's car profitability is not good, or it has a certain relationship with its publicity and marketing expenses.
Phoenix Network Technology found that the current spokesperson of Tuhu Car is Huang Bo, last year's "Double Eleven", talk show king Zhou Qimo, popular player He Guangzhi and so on have also done publicity for Tuhu Car.
In addition, Tuhu Car also regularly launches 9.9 yuan car wash, 50% discount maintenance and other newcomer promotion activities.
With high-profile publicity, Tuhu Has successfully attracted a large number of users.
As of September 30, 2021, Tuhu's flagship app and online interface had 72.8 million registered users. According to Analysys Qianfan data, Tuhu's monthly active population in December 2021 was 7.7857 million.
Although it has a large number of users, the use experience of Tuhu car breeding is also widely controversial.
On the one hand, some customers believe that Tuhu's "tire repair price is particularly affordable" and "the customer service sister service is particularly good, pouring tea and helping to adjust movies, which can be called Haidilao-style service.".
On the other hand, some users complained that Tuhu car maintenance is "Tuhu dismantling", changing tires, simple maintenance is OK, mechanical disassembly and other car repair business experience is bad.
Can the listing relieve the performance pressure of Tuhu Car? According to industry analysts, Tuhu car stores are mostly in the form of cooperation and franchise, the management model is difficult to unify, and the maintenance workers are mostly young people who have just graduated, with insufficient experience, which has become the fundamental place where Tuhu car is difficult to obtain user trust.
In 10 years and 16 rounds of financing, Tencent is the largest shareholder
In 2011, Tuhu Yangche was established, initially with tire service as its main business, when the initial team was only 6 people, and the starting capital was only 300,000 yuan.
Chen Min, founder and CEO of Tuhu Yangche, who has done tire business, said that because of the limited funds in the early stage of entrepreneurship, several people in the founding team shouldered several jobs, not only to run stores, drive deliveries, write codes, but also answer the phone as customer service.
In the following ten years, Tuhu Car has obtained a total of 16 rounds of financing, including Qiming Venture Capital, Junlian Capital, Joy Capital, Baidu, Tencent and so on.
The shareholding ratio of the top five shareholders is: Tencent holds 19.41%, Chen Min, founder and CEO of the company, holds 11.76%, Joy Capital holds 8.98%, Sequoia China holds 7.56%, and co-founder and president Hu Xiaodong holds 3.22%.
After many capital blessings, Tuhu's business plate of car breeding is also expanding.
According to the prospectus, Tuhu Car has become an online and offline integrated car service platform, meeting the needs of a full range of car services from tire and chassis parts replacement to car maintenance, repair, and car beauty.
At present, Tuhu's auto parts database covers 239 brands, more than 44,000 models, and the matching accuracy is as high as 99.94%.
Cooperative stores account for more than 90% of the car into "car dismantling"?
The business plate of Tuhu Car has been fully rolled out, but in the minds of most users, some of The business of Tuhu Car is not "reliable".
Phoenix Technology found that most users trust the Tuhu car replacement, car washing, basic maintenance and other businesses, but do not trust the more difficult maintenance business such as changing parts.
Tuhu Car is known as Haidilao in the "car repair shop". At Tuhu Car, users can get a polite reception, and they can drink tea and drinks while watching movies and waiting for the service to be completed. After the user encounters a problem complaint, it can be quickly responded to and dealt with.
As of September 30, 2021, Tuhu Has 663 customer service representatives to help customers solve problems in a timely manner.
However, incidents such as Tuhu's car repair and "car demolition" also occur from time to time. Some users complained on the social platform, after using Tuhu to replace the parts, they found that the maintenance personnel mistakenly operated and broke the car's battery cap in half; there were also user reactions that the maintenance personnel of Tuhu Car mistakenly damaged the rear caliper assembly when replacing the electronic parking brake pads.
"Maintenance or go to the 4S shop" "Tuhu can only wash the car, do basic maintenance"... According to many users, the level of Tuhu's cooperative franchise stores is uneven, and some of the skilled workers in the store are newly graduated students and lack maintenance experience.
Judging from the prospectus, Tuhu Yangche's stores have three operating modes, namely Tuhu Yangche's self-operated workshop store, franchised workshop store and cooperative store.
At present, Tuhu Yangche has more than 3,300 workshop stores and more than 33,000 cooperative stores nationwide, accounting for more than 90% of the cooperative stores.
The operation of the partner stores is not controlled by Tuhu Car, and there is no unified technician management and service quality of Tuhu Car, and only the installation service is provided for the products sold on the online platform.
Tuhu Yangche said in the prospectus that if the franchisee does not comply with the franchise agreement or policy, or the cooperative store operator does not comply with the cooperative store agreement, the company's business can be damaged.
In addition, any damage to Tuhu's brand or reputation may have a significant adverse impact on Tuhu's business, market share and operating results.
In less than three years, the marketing expenditure was about 3.5 billion yuan, and the loss was 11.791 billion yuan
Ten years after its establishment, Tubu Car, with 36,000 stores and nearly 10 million users, has not achieved profitability.
According to the prospectus, in 2019, 2020 and the first nine months of 2021, Tuhu Achieved Operating Income of RMB7.04 billion, RMB8.753 billion and RMB8.442 billion, respectively, gross profit of RMB523.4 million, RMB1.1 billion and RMB1.3 billion, and net liabilities of RMB6.5 billion, RMB9.9 billion and RMB14.2 billion, respectively.
During the above-mentioned reporting period, Tuhu's losses were 3.428 billion yuan, 3.928 billion yuan and 4.435 billion yuan, respectively. In less than three years, the loss was 11.791 billion yuan, and the average monthly loss exceeded 350 million yuan.
Under the huge loss, Tuhu Car continues to invest heavily in marketing. According to the prospectus, Tuhu's sales and marketing expenses are the largest part of operating expenses, and the percentage of total revenue has been relatively stable during past record periods.
Phoenix Technology found that Tuhu's sales and marketing expenditure in the past three years was about 3.5 billion yuan, with an average monthly expenditure of about 100 million yuan. For 2019, 2020 and the nine months ended September 30, 2021, sales and marketing expenses as a percentage of total revenue were 14.7%, 14.4% and 14.5%, respectively.
At present, the spokesperson of Tuhu Yangche is the first-line actor Huang Bo, and at the same time, during last year's Double Eleven, Tuhu Yangche also invited network traffic to be responsible, and Zhou Qimo, the talk show king, and He Guangzhi, a popular player, did publicity.
From September 16 to October 13 last year, Tuhu car advertising was rolled out at 53 high-speed rail stations in Beijing, Shanghai, Guangzhou, Loudi and Maoming.
Under the high-profile publicity, the number of Transaction Users and Monthly Active Users of Tuhu Car is growing significantly. For the 12 months ended September 30, 2021, the Company had 13.9 million trading users, an increase of 35.6% year-on-year.
Behind the growth, whether it can retain users and smoothly realize it has become the key to the future development of Tuhu Car.
In its prospectus, Tuhu Stated that if the company fails to attract and retain new customers in a cost-effective manner and increase the participation of existing customers on the company's platform, the company's business and operating results may be adversely affected. "We have recorded losses and negative cash flows from operating activities in the past and may continue to do so in the future."