Following last year's "digital freight first share" Manbang Group (YMM. After US) landed on the New York Stock Exchange, the capitalization process of freight platforms is accelerating, and large and small freight platforms have begun to accelerate the pace of impact on listings.
Zhitong Finance APP learned that the short-distance freight platform Fast Dog Taxi (GOGOX) has recently passed the listing hearing of the Hong Kong Stock Exchange, and intends to launch a formal IPO and list on the main board on the main board on a selected date, with CICC, UBS, BOCOM International and ABC International as joint sponsors, which also seems to mean that Kuaigou Taxi will be one step ahead of its peers and become a member of the capital market.
Burned 1 billion marketing expenses in three years
Founded in 2014, Kuaigou Taxi is a major online same-city logistics platform in Asia, formerly known as 58 Express, and was once a member of the Dajia Group. As the name suggests, Fast Dog Taxi is inextricably linked to 58 Group, and according to its prospectus, 58 Daojia, which is held by 58.com, accounts for 51.2% of the company's issued common stock.
It is worth noting that before landing on Hong Kong stocks, Fast Dog Taxi was already the "darling" of capital, and had obtained several rounds of financing, of which the pre-transaction valuation of the C round financing reached 1.5 billion US dollars. Alibaba, 58.com, Cainiao, BOCOM International, etc. all occupy a certain share in it. According to the prospectus, Taobao China and Cainiao accounted for 13.09% and 2.87% of the issued common stock of Fast Dog Taxi, respectively.
At present, fast dog taxi in Chinese mainland with the brand of "fast dog taxi" as the brand, in Asia and other countries with the "GOGOX" brand service, now covers a total of more than 340 cities in 5 countries or regions. According to the total transaction volume in 2020, Fast Dog Taxi is the second largest online same-city logistics platform in Chinese mainland, with a market share of 5.5%.
From a user perspective, as of September 30, 2021, Fast Dog Taxi had about 26.5 million registered shippers and about 4.9 million registered drivers. In the first three quarters of 2021, the fast dog taxi platform completed a total of 20.3 million consignment orders, generating a total transaction volume of about 1.953 billion yuan.
Financially, Fast Dog Ride-hailing's revenue comes from service fees charged for drivers using its platform to provide logistics services to shippers. The Company treats the driver as a customer and charges a service fee in the form of a commission or membership fee. The company's revenue in 2018, 2019 and 2020 reached $453 million, $549 million and $530 million respectively, and gross profit margin was 23.0%, 31.6% and 34.6% respectively for the same period. In addition, revenue in the first three quarters of 2021 increased by 27.2% year-on-year to RMB473 million.
From the perspective of revenue structure, the business of fast dog taxi is mainly divided into three types, enterprise service revenue, platform service and value-added services. Enterprise services account for more than 50% of total revenue over the years, platform services account for about 30%-40%, and value-added services account for a relatively small proportion.
However, the growth of business and scale has not brought substantial profits to Fast Dog Taxi, as of now, Fast Dog Taxi has not yet achieved profitability, and the net loss in the past three years from 2018 to 2020 reached 1.071 billion yuan, 184 million yuan and 658 million yuan respectively. In the first three quarters of 2021, the net loss of Fast Dog Taxi reached 393 million yuan.
The reason for the continuous year-long loss is not unrelated to the high cost of Fast Dog Taxi for several consecutive years - from 2018 to 2020, the sales and marketing expenses of Fast Dog Taxi reached 524 million yuan, 296 million yuan and 195 million yuan respectively, accounting for 115.7%, 54% and 36.7% of its current revenue, totaling nearly 1 billion yuan, and the re-expenditure in the first three quarters of 2021 was 231 million yuan, accounting for 48.9% of the revenue in the period, and the proportion increased again.
In other words, in order to promote the brand and attract users and drivers, Fast Dog taxi is still the most common high-subsidy "burn money" customer acquisition route, which is also the choice of almost all freight platforms in the industry. And in · " Under the heavy money, the company has significantly increased the cost of customer acquisition, and in the later stage, it will have to continue to burn money in order to maintain the business and scale in the fiercely competitive market.
After a period of user accumulation, the fast dog taxi platform adjusted the commission rate in the Chinese mainland, from 5.8% in 2018 to 11.7% in April 2021, and the commission rate in overseas markets rose from 4.5% to 8.7%, but did not alleviate its predicament, but further caused the loss of monthly activity and single volume.
According to the prospectus, during the period from May to November 2021, the average number of monthly active users of fast dog taxi Chinese mainland dropped from 569,500 in the same period last year to 483,600, and the average number of monthly consignment orders fell from 2,147,700 to 1,951,700, and the total transaction volume shrank by about 35.7 million yuan.
It is understood that in this IPO, Fast Dog Taxi intends to use the net proceeds to expand the user base and increase brand awareness; Develop new services and products to enhance monetization; Seeking strategic partnerships, investments or acquisitions in overseas markets; Enhance our technical capabilities and enhance our R&D capabilities and working capital and general corporate purposes. From this point of view, the "burning money" of fast dogs may still be a long way.
The race track is fiercely competitive, and it is difficult to break through the fast dog taxi
The rise of short-distance freight is obviously related to the economic development of domestic cities, the growth of the logistics industry and the prosperity of e-commerce channels, and its future development scale and growth rate are considerable. From the perspective of competition pattern, the online logistics market of Chinese mainland is highly concentrated, and according to the total transaction volume in 2020 and the first three quarters of 2021, the five major market practitioners accounted for about 67.5% and 60.5% of the total market share respectively, of which fast dog taxi ranked second and third respectively in the same period, with a market share of 5.5% and 3.4% respectively.
In order to break through in the increasingly serious freight track of "inner volume", Fast Dog Taxi began to work hard in technology - artificial intelligence, big data analysis, machine learning and technical capabilities in the field of unmanned driving have become the technical highlights of Fast Dog Taxi. At present, the core technology and software system of Fast Dog Taxi have registered 13 patents and 20 software copyrights. Based on the matching system and route optimization technology, the fast dog taxi platform reduces the median time used by the driver to the shipper from 23 seconds to 11 seconds, and further improves user stickiness.
In terms of platform services, corporate customers are the most important source of income for Fast Dog Taxi, so Fast Dog Taxi has created a corporate customer service team of 69 people, which is aimed at corporate customers with recurring logistics needs, including supermarkets, restaurants, building materials suppliers, furniture retailers, community group buying platforms, e-commerce platforms and government agencies. As of September 30, 2021, Fast Dog Taxi has provided corporate services to more than 37,000 smes and large enterprises.
However, in view of the increasingly crowded freight track in the same city, in addition to the enterprises such as Lala, Manbang and Fast Dog Taxi, which were originally deeply cultivated in this subdivision industry, giants such as Didi and SF are anchoring to this blue ocean, and after the "rich" Didi entered the game, it adopted a consistent high-subsidy play method, attracting a large number of truck drivers to flow into the platform, making the pattern of the industry confusing again. In addition, the industry's absolute leader Lala has also increased subsidies, and competition has gradually become fierce.
The victory or defeat is not divided, the first listing of the fast dog taxi, "blood replenishment and re-battle" may be a wise choice.