Chapter 2271 Uber

James was stunned when he heard Zhao Fusheng's words.

He really hadn't expected Zhao Fusheng to ask him this question directly.

"Heh, I don't mean anything else."

Zhao Fusheng looked at James and said calmly, "I just think maybe you should tell me why you're so optimistic about this company, Uber. Is it just because Uber's future is worth looking forward to?"

"Of course not."

James naturally understood what Zhao Fusheng meant by asking this, and he also knew that with Zhao Fusheng's sources of information, it was impossible for him not to know why James had come to him.

To be precise, James actually understood that he couldn't hide the fact that he regarded Zhao Fusheng as an investor, and moreover, he didn't intend to hide it from Zhao Fusheng.

Having been in investment for so many years, James put himself in others' shoes; if it were him, what he might dislike most was being kept in the dark.

"Zhao, I'm not just optimistic about Uber. I think investing in Uber will yield huge returns."

Looking at Zhao Fusheng, James said slowly.

Clearly, his confidence in this company exceeded Zhao Fusheng's imagination.

Zhao Fusheng smiled: "Mr. James, give me a reason. I know you don't just want me to invest in Uber, do you?"

Investing in an Uber wouldn't cost much money, after all, the company had only just started not long ago.

"Yes, I want to set up an investment company."

Seeing that Zhao Fusheng had seen through his thoughts, James was very calm and nodded to Zhao Fusheng: "Including you, I've already met with more than ten investors."

"Oh?"

Zhao Fusheng was taken aback, then smiled: "What, are all of us your clients?"

"Most of them are people I've worked with or wealthy individuals I know."

James shrugged, looking completely at ease: "I think anyone willing to increase their wealth shouldn't miss my proposal, don't you think?"

"Haha, I have to say, you surprise me."

Zhao Fusheng nodded: "Go on, Mr. James. You should know that I'm not really interested in investments worth one or two million dollars, or even ten million."

James naturally understood what he meant.

Nowadays, Zhao Fusheng's net worth was probably tens of billions of dollars; if the business he proposed was too small, the man really wouldn't be interested.

In a sense, for an investment of a few million dollars, Zhao Fusheng might as well buy a stock and hold it long-term, which would at least guarantee future returns.

"I plan to set up a fund specifically targeting today's emerging internet companies. There are many young people in Silicon Valley who need our investment."

Looking at Zhao Fusheng, James said word by word.

Angel investing?

Zhao Fusheng was startled, then smiled.

"How much money do you need?"

"Huh?"

This time, it was James's turn to be stunned.

He hadn't expected Zhao Fusheng to agree so readily. Wasn't this guy going to ask him about specific plans?

Why was he different from the others?

James remembered clearly the process of persuading other investors. During this time, he had been traveling across the United States and Europe, constantly meeting with investors and trying to convince them.

But those guys always raised all kinds of questions, keeping him busy.

Zhao Fusheng was the only one, and the first, to directly ask how much money he needed instead of asking various questions.

"You're not new to this industry, and I haven't known you just for a day, Mr. James."

Zhao Fusheng smiled and said, "You know, I'm always quite casual about investments. How about this: I'll invest one hundred million dollars in your new fund, but I have one condition. You need to give me a promise. No matter what investment project, if the profit reaches a certain level, I can demand to withdraw my capital."

"Hmm?"

James frowned, clearly not understanding Zhao Fusheng's meaning.

Zhao Fusheng shrugged: "For example, if you invest in a company and it appreciates from ten million to one hundred million, I think, as an investor, I can demand to cash out."

"Well..."

James immediately understood what Zhao Fusheng meant and hesitated.

This matter was indeed a bit difficult for him.

After all, in investment, sometimes you can't just withdraw capital whenever you want.

"Mr. James, or maybe you can talk with me."

Zhao Fusheng smiled: "For instance, about my investment in Uber."

"Huh?"

James was already confused. What exactly did Zhao Fusheng want to do?

Zhao Fusheng smiled without saying a word. Since James didn't understand his meaning, there was no need to continue this conversation. He hoped James would figure it out sooner.

Watching Zhao Fusheng leave his sight, James remained silent for a long time.

He always felt that this most mysterious Chinese billionaire seemed to have something else up his sleeve.

In business, Chinese and Jews were both extremely intelligent—this was a consensus worldwide.

Although it sounded absurd, after witnessing many negotiations, James had to admit that in business, Chinese and Jewish people had very high talent; they could always find ways to make money through various means.

"Chairman, you..."

Following Zhao Fusheng out of the golf course, Liu Yiming asked with some confusion: "Are you not planning to invest?"

"No."

Zhao Fusheng smiled and shook his head: "I never said that."

"Huh?"

Liu Yiming was dumbfounded.

He thought Zhao Fusheng was deliberately making things difficult for Mr. James.

Otherwise, it was just investing some money; why make it so complicated?

Now it seemed the chairman had other plans.

And it seemed the other party hadn't noticed.

"Alright, don't overthink it."

Zhao Fusheng waved his hand and said to Liu Yiming: "Have Miss Dong step up the collection of information on Uber, understand?"

"Okay, Chairman, rest assured."

Liu Yiming quickly nodded.

In fact, before they set out, Dong Chenxi had already started collecting information on Uber.

...

...

When Zhao Fusheng returned to the hotel, Dong Chenxi was already waiting for him.

"How did it go? Good talk?"

Dong Chenxi smiled and asked when she saw Zhao Fusheng.

Zhao Fusheng shook his head: "Mr. James is no novice; how could it be settled so easily?"

"Exactly."

Dong Chenxi smiled: "That guy is not easy to deal with."

As the head of Future Investment, she had dealt with James many times, and they had clashed in the investment market, so she naturally knew how troublesome James could be.

That guy seemed inarticulate, but in fact, in the Chinese investment market, James was a very formidable figure.

An American who could master Chinese culture and language was not easy to come by.

"How is the investigation on Uber going?"

Zhao Fusheng smiled, said no more about James, and asked Dong Chenxi about Uber.

Dong Chenxi nodded, handed the materials to Zhao Fusheng, and said: "Take a look. From the data, this company's prospects are indeed decent."

"Oh?"

Zhao Fusheng was a bit surprised and casually took the materials to read.

Before Uber, hailing a taxi in the US basically depended on luck; waving down a cab on the street was nearly impossible.

Passengers had to call ahead to book a cab, and sometimes there was even the risk of being stood up.

If you were catching a flight, it was recommended to book a professional airport transfer service. After getting out of the car, the driver would remind the passenger to tip a certain amount.

In the whole process of calling a cab, most of the time was wasted waiting for the driver.

Addressing the pain points of the traditional US taxi industry, Uber brought a disruptive solution. Their app clearly showed the availability of nearby vehicles, and users could accurately track the vehicle's information. The waiting time was reduced from at least half an hour to five minutes, and what was even more commendable was that the payment process became simpler.

The reason Uber was popular was not just that it developed a product that solved pain points, but more importantly, it freed people from a series of cumbersome processes.

In the past, on-demand taxi services were a nightmare for users; now it was an enjoyment. The payment process used to be unpleasant, but now everything was smooth and natural.

To achieve all this, the guest only needed to tap the screen.

From this perspective, even Zhao Fusheng had to admit that Uber had done a great job!

"Isn't it great?"

Dong Chenxi asked Zhao Fusheng with a smile.

Zhao Fusheng nodded: "Yes, very impressive. Look at their promotion strategy. First, they developed the first batch of seed users by sponsoring offline events organized by tech groups, and during the events, they provided free rides to seed users. This group of seed users liked to embrace new things, could quickly learn how to use the app, and most importantly, they liked to use technology to improve their quality of life."

"Yes, and then these people became their users and also helped them promote."

Dong Chenxi smiled: "Moreover, they let those part-time drivers earn money. An income of several hundred dollars a day was higher than that of a programmer, so many people were willing to become such part-time drivers."

Zhao Fusheng nodded and continued reading.

It had to be said that Uber's marketing strategy was really effective. They chose to tailor promotion plans based on local cultural customs and regulations.

The growth team built localized growth models and found that factors like nightlife, holiday activities, weather conditions, and sports events affected promotion results.

Take Chicago as an example. The city had a rich nightlife and frequent large sports events, but the weather was not ideal. So Uber's team specifically addressed Chicago's weather problem with corresponding measures.

And due to the precise grasp of the city's characteristics, Chicago's growth rate was twice that of ordinary cities.

Also, they often held activities, such as giving ordinary users ten-dollar ride coupons, free ice cream in summer, flowers on Valentine's Day, ingredients for barbecues, and free eight-hour pick-up and drop-off services for American football players.

The most flashy among them was the helicopter booking service, with a low cost of one hundred euros per person for about an hour.

"Impressive!"

After a long while, Zhao Fusheng put down the materials and said to Dong Chenxi with a smile: "The founder of Uber really has a way."

"Indeed, but I don't quite understand. If that's the case, why isn't Sequoia Capital optimistic about this company?"

Dong Chenxi asked Zhao Fusheng in confusion.

Zhao Fusheng thought for a moment and smiled: "I guess it might be due to the issue of monetization."

"Monetization?"

Dong Chenxi was a bit surprised.

Zhao Fusheng nodded: "In the internet world, the free model is the most common business model. Psychologists have repeatedly proven through experiments that people have no resistance to free things.

Take two bottles of water placed in front of you, identical except for the price. One is priced at one dollar, the other is free. Which bottle would you choose?"

Dong Chenxi was startled, then understood Zhao Fusheng's meaning.

Indeed, this principle really applied to Uber.

Uber's first-time registered users could get a twenty-dollar ride coupon, and users didn't need to bind a bank card.

When all registration barriers were removed, customers had no reason to refuse this free lunch. Uber drivers even actively recommended passengers to use free coupons.

On a deeper level, Uber's goal was not only to acquire users but more to change people's deeply ingrained travel habits. Once people's habits are formed, they are hard to change. Foreign tech companies like to give users a free trial period, usually seven to thirty days.

After the trial period, users could decide whether to pay for the service. Before applying for the trial, users were required to bind their personal payment information. During the trial, if users were satisfied with the product, they could complete the payment authorization with one click.

But the problem was that after this series of actions, it wasn't easy for the platform to make a profit.

A large number of free activities attracted customers, but at the same time, the company's development was actually restricted.

This was probably the real reason why Sequoia Capital shied away from this company.

"But from a long-term investment perspective, it's still worth a try."

Zhao Fusheng smiled and said to Dong Chenxi.

"Long-term investment?"

Dong Chenxi frowned slightly, clearly not understanding Zhao Fusheng's meaning.

Future Investment had held shares in a company for the long term before, such as JD and Facebook, which had been in Zhao Fusheng's hands for many years.

But Zhao Fusheng had never spoken in such a tone before.

Based on her understanding of Zhao Fusheng, no matter how she thought about it, she felt that Zhao Fusheng was clearly not optimistic about Uber's future development.

What was going on?