Can Luckin, Mobike, Didi or WeWork Be Profitable? (6)

In this class, I discuss Didi, Luckin and Mobike and how to predict if they will ever 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 productionNon-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 DigitalFrom Didi to Mobike to Luckin: How Money and Hype Are Distorting Digital China

-----

Please join my executive education course for deeper insights into China’s tech leaders. There is a 30-day free trial.

This 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 via podcast at iTunes and Himalaya.

Support the show (https://jefftowson.com/iump-subscription-package/)