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 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

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I write and speak about digital China and Asia’s latest tech trends.

I also run Jeff’s Asia Tech Class, a podcast and subscription newsletter on the strategies of China / Asia tech companies.

This content (articles, podcasts, website info) is not investment advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. Investing is risky. Do your own research. 

www.jefftowson.com

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