The money has burned out the road, and Tencent, didi and 5 billion still cant save renrenche?

category:Finance
 The money has burned out the road, and Tencent, didi and 5 billion still cant save renrenche?


However, as of the time of press release, 58 city side responded to the first finance and economics reporter that the news is not true.. Renrenche also responded to first finance and economics, saying that the relevant information is untrue and reserves the right to investigate the legal responsibility of the disseminator of false information according to law.

Although the news has not been confirmed yet, the domestic used car industry has been in a survival crisis after the epidemic, and many head manufacturers have reported layoffs. From January to June 2020, 5.5164 million second-hand cars were traded in China, with a year-on-year decrease of 19.61%. Long circulation channels, customer acquisition costs, accumulated disadvantages and other problems make the domestic used car industry under great pressure at the present special moment.

Renche on the downhill road

Although both parties have denied the sale speech, according to the public information of tianyancha, the founding team of renrenche has left one after another. Recently, many industrial and commercial changes have taken place in Beijing renrenche Network Technology Co., Ltd., and the legal representative has been changed from Du Xiyong to Zhao song; the former shareholders Wang Qingxiang and Li Jian withdrew, and the new shareholders, Wang Xue and xiangruikeyao (Beijing) Technology Co., Ltd., have been added u3002

In addition, the companys former supervisor Chen Ying, manager Du Xiyong and executive director Li Jian withdrew, adding Zhao song as manager and executive director, and Yu Yang as supervisor; the enterprise type was changed from limited liability company (invested or controlled by natural person) to other limited liability company.

Founded in September 2014, Beijing Renren Car Network Technology Co., Ltd. has a registered capital of 1 million yuan, which was once a prominent representative of the domestic used car industry. At present, the largest shareholder of the company is xiangruikeyao (Beijing) Technology Co., Ltd., with a shareholding ratio of 99.99%.

After the period of the most rapid development, renrenche continued to go downhill.

In 2018, Li Jian, founder of Renren auto, said in an interview with the media: I said before that there is a foundation and possibility of merger in this industry. I want to express the possibility of merging in the second-hand car industry in the long run, but at present, Renren car has no intention of merging, and its business has grown very fast. Judging from the whole track, renrenren and its competitors may not even reach 10 points. The market can fully accommodate us to continue to move forward. I dont think there will be a merger in the short term (within one or two years)

Less than a few months after that, renrenrenche was reported to have laid off staff. Starting from September 2018, renrenrenche has successively closed several small sites, providing certain compensation or severance payment to the staff of the site, or providing a franchise plan to let some employees become franchisees. Renrenches response at that time was normal business adjustment of the company.

In addition, the first financial reporter interviewed many renrenche employees and learned that renrenrenche has directly closed down nearly 100 service cities to more than 30. The official statement said that a series of actions were the strategic adjustment of the companys transformation, and responded to the first finance and economics that the statement of layoffs in 2018 was not true. However, in the process of transformation and upgrading, there may be some problems that the communication is not in place and the employees do not understand. At present, the communication is in the proper way.

An investor who has participated in the investment research of renrenren car told the first finance and economics reporter that the main problems of renrenche are poor management and excessive burning of money. In 2018, renrenrenche has not yet achieved profit, and the capital chain has been tight for many times.

Negative dynamics continue to occur. On February 18, 2019, the news about renrenche bankruptcy appeared on the Internet, and the official microblog of Renren car responded that the information was false and was deliberately spread. However, at the bottom of the official micro response, a number of employees who claimed to be renrenche in many cities across the country said that they had been shut down and forced to lay off staff. Some we media called it the scene of large-scale rollover.

Hard used car industry after epidemic

The success or failure of a startup affects not only the founding team, but also the investors behind it.

Since 2014, renrenrenche has been granted a round of financing of US $5 million from red point China, and Renren car has been continuously supported by funds from ceyuan venture capital, Shunwei capital, Tencent investment, Didi travel, etc. In April 2018, renrenrenche obtained a new round of financing of US $300 million led by Goldman Sachs Group and co invested by Tencent and didi.

Li Jian once said that while accepting Didis investment, Renren car has added C2B mode to the original C2C mode.

In theory, the business of renrenrenche and didi are highly complementary - didi has purchased a large number of second-hand cars from Renren, and Renren and didi have carried out in-depth cooperation in automobile trading, finance, after-sales, technology and operation.

If renrenren car is sold at a low price of 8000 yuan, it means that Tencent and didi have failed to invest in Renren car, a second-hand car project.

In addition to renrenrenche, Tencent also has a number of second-hand car companies.

On March 1, 2018, cheduo group (including melon seed used car direct sale network and Maodou new car network) announced that it had completed the c-round financing of $818 million, led by Tencent. In 2013, Youxin group (Youxin second-hand car) obtained a round of financing of $30 million, which was jointly invested by Tencent industry win-win fund, Junlian capital and Hillhead capital. In addition, the core business of daily car auction, established in September 2015, is to help individual users sell their cars at a high price and quickly. Tencent is also listed in the list of investors.

Before the outbreak of novel coronavirus pneumonia, the macro environment development of the macro industry was already weak, and the huge impact of the epidemic, the enterprises who had been struggling to survive had repeatedly sold assets or sought reorganization. In addition to renrenren car, including Youxin group and Guazi used car, there are also news of layoffs. In July 2019, Youxin sold its second-hand car financial business to goldenpacer, an auto finance enterprise controlled by 58 group, in exchange for us $100 million in cash and a certain number of shares of goldenpacer; in January 2020, Youxin sold its accident car auction business to boche.com at RMB 330 million; in March, Youxin sold its B2B used car online auction business Youxin auction with us $105 million u201dSold to 58 group. So far, the biggest business retained in Youxin listed companies is only the second-hand car nationwide purchase business.

In addition, according to the data of China Automobile Circulation Association, the transaction volume of Chinas second-hand car market in 2019 is 935.686 billion yuan, an increase of 8.76% compared with that in 2018. However, affected by the epidemic situation, 5.5164 million second-hand cars were traded in the whole country from January to June 2020, with a cumulative decrease of 19.61% over the same period of last year, and the decline rate was further narrowed; the transaction amount was 339.428 billion yuan, and the cumulative transaction volume decreased by 21.72% year-on-year.

The development of domestic used car industry has not improved obviously for many years. The essence lies in the problem that the industry itself is difficult to overcome. About 95% of the car sources in China are concentrated in the hands of individual sellers. Second hand cars are typical large amount non-standard product transactions. The long circulation channels, high customer acquisition costs, not transparent transaction process and accumulated disadvantages of the industry lead to the distrust of users in the industry, which makes used cars become a success The exchange efficiency is low.

In addition, according to the Research Report on business environment of second-hand car business enterprises in 2020 issued by China Automobile Circulation Association, restrictions on the relocation of second-hand cars and registration of second-hand car ownership transfer are considered to be the biggest policy difficulties facing the development of second-hand car distribution enterprises.

Some enterprises interviewed in the report pointed out that the policy of restricting the relocation of second-hand cars affects the cross regional circulation of second-hand cars, hinders the development process of nationwide market circulation order, affects the value preservation rate of second-hand cars, and is not conducive to the development and utilization of the surplus value of second-hand cars. In addition, the second-hand car transfer registration policy affects the transfer efficiency of second-hand cars, which makes the business cycle longer and improves the operating costs. In response to the above problems, Hu Jianping, deputy director of the market system construction Department of the Ministry of Commerce, recently stressed that the Ministry of Commerce will work with relevant departments to speed up the revision of the management measures for the circulation of second-hand cars, highlight the role of market allocation of resources, stimulate market vitality, strengthen regulatory services, facilitate second-hand car transactions, focus on promoting transparency of vehicle information and encouraging vehicle history inquiry service To strengthen the solution of relevant outstanding problems. In short, it is urgent to find a simple way to survive in the past. Source: editor in charge of Finance and Economics: Zhong Qiming_ NF5619

Some enterprises interviewed in the report pointed out that the policy of restricting the relocation of second-hand cars affects the cross regional circulation of second-hand cars, hinders the development process of nationwide market circulation order, affects the value preservation rate of second-hand cars, and is not conducive to the development and utilization of the surplus value of second-hand cars. In addition, the second-hand car transfer registration policy affects the transfer efficiency of second-hand cars, which makes the business cycle longer and improves the operating costs.

In response to the above problems, Hu Jianping, deputy director of the market system construction Department of the Ministry of Commerce, recently stressed that the Ministry of Commerce will work with relevant departments to speed up the revision of the management measures for the circulation of second-hand cars, highlight the role of market allocation of resources, stimulate market vitality, strengthen regulatory services, facilitate second-hand car transactions, focus on promoting transparency of vehicle information and encouraging vehicle history inquiry service To strengthen the solution of relevant outstanding problems.

In short, it is urgent to find a simple way to survive in the past.