Losing Money to Be a Tycoon - Chapter 1521

Chapter 1521: Fish-Catching Take-Out’s Unique Business Model

Translator: Atlas Studios Editor: Atlas Studios

Rui Yuchen continued. “Now, everyone might think that take-out is not bad. There are subsidies for every meal. You can eat good take-out as long as you don’t have much money. That’s why you have a good impression of i
“However, everyone can think about it carefully. Didn’t everyone taste the benefits when express delivery companies and other similar platform companies engaged in a money-burning war a long time ago? However, what happened after that?”

“The platform companies obtained a market monopoly by burning money. Next, there were all sorts of tricks: big data maturing, finding excuses to increase the price, releasing new services with higher prices, and secretly shrinking the original service… In short, the price increased back unknowingly.”
“Customers think that they have benefited from it, but in fact, they have to return it honestly in the future.”

“The current business model of home delivery is the same: first obtain a lot of money through financing, then use this money to subsidize merchants, drivers, and customers and seize the market position. As they expand their market position, it will constantly take over other take-out platforms,
integrate resources, and attract more investments.”

“Finally, I achieved a market monopoly and began to harvest happily. I became a business that had no risks and would never incur losses.”
“In the near future, the following scenes can be foreseen.”

“For the merchants, take-out would continuously increase the quota of the maids and constantly test the bottom line of the merchants’ profits. In the end, only a small portion of the profits would be left to the merchants and most of the profits would be taken away.”
“I’s not a big deal if it’s just a decline in the merchants’ profits. The key is that something even more terrifying will happen.”

“As the profits become lower and lower, the restaurants that provide high-quality food will become less and less able to continue. Those that can survive under such a high commission will only be those take-out shops with high profits.”

“There are two ways to make high profits: One is that the brand’s value is outstanding and the price negotiation ability is strong, For example, some famous fast food brands overseas, but this is ultimately very rare. The second is to rely on shrinking costs to suppress some external sales to an
unimaginable low price.”

“For example, we can use cheap take-out to make food that looks good. We might have set a very low price but there are still huge profits.”
“However, such take-out cannot even guarantee basic health. As time goes by, there will be more and more similar merchants on the platform. It will definitely have the effect of bad money expelling good money.”

“For the cavalry, the take-out of the homebody would constantly test the limit of the delivery limit through the big data algorithm. They would first send you five orders. If most people can successfully complete it, they would continue to add on. Six orders, eight orders, ten orders… The cavalrymen had
no choice but to rush the red light and violate the rules. This part of the profits would also be happily taken by the homebody.”

“For customers, the fees will gradually increase, but it will not directly increase the delivery fee. Instead, it will gradually reduce the coupons and discount quota from the beginning of the tight subsidies. After that, it will be the big data who are familiar with it, secretly increase the delivery fee, and even
publicly cry that the delivery guys are working too hard and want to increase the delivery fee.”

“However, in fact, they would definitely not provide any security for the delivery men. Even if they did, they would definitely be deducted from the labor of the delivery men.”
“In the end, the interests of all three parties would be damaged, and the platform would develop into a giant. It would further tie the entire industry together and truly realize the dream of lying down and earning money.”

Rui Yuchen paused at this point.

After that, he changed the topic and continued. “Some people might ask, isn’t Fish-Catching Take-Out a platform as well? What’s the difference between it and take-out at home?”

“can say very responsibly that Fish-Catching Take-Out and Home Take-Out are completely different.”

“When Boss Pei started the Fish-Catching Take-Out brand, he had already planned the business model of Fish-Catching Take-Out. This business model is fundamentally different from platforms like home take-out.”

“Fish-Catching Take-Out is not a pure platform. It has a large number of offline stores that provide tangible food for customers.”

“Fish-Catching Take-Out will definitely not review or check if the shops on the platform are safe and hygienic. However, Fish-Catching Take-Out can guarantee that we will provide healthy and delicious food for customers.”

“Fish-Catching Take-Out, Cold-Faced Lady’s snacks, and the latest hot milk tea are all dedicated to providing healthy and delicious food for everyone. What’s more, they cover most people’s taste. The key is that they eat and drink without worry.”

“All of our delivery men are like Upwind Logistics. They are officially authorized employees who pay insurance, insurance, and funds. They have various formal benefits. We will not use the system algorithm to squeeze the limits of every delivery man. Instead, we will use performance salaries to
encourage them. We will allow them to obtain stable income under the premise of following the traffic rules.”

“Are we earning profits? Of course, we are also earning money, but the way we eam is different from platform companies like Home Take-Out.”
“The source of our profits is mainly from Fish-Catching Take-Out, Cold-Faced Lady snacks, and fast selling milk tea. Secondly, it is a small amount of platform profits.”

“This is the business model that Boss Pei planned for Fish-Catching Take-Out: Delicious Chinese food and beverages are the foundation. That’s why we first had Fish-Catching Take-Out’s shop, and then the Fish-Catching Take-Out application platform. In Boss Pei’s eyes, the platform is ultimately meant
to serve the body. We cannot kidnap the body.”

“On top of that, Fish-Catching Take-Out is not like platform companies like Home Take-Out. It does not have an extremely high demand for profits. In some big cities, Home Take-Out has already deducted 20% of the merchants. What’s more, this number might continue to increase in the future. That’s
because Home Take-Out pursues profitability as the first goal.”

“However, Fish-Catching Take-Out is different. To Boss Pei, profit margins are never the first goal. We are pursuing the improvement in the taste of the dishes, the expansion of coverage, and the actual convenience of customers and delivery men.”
“In the future, we will also let the merchants join the Fish-Catching Take-Out platform. We can share the delivery resources of Fish-Catching Take-Out stores all over the country. Here, I promise everyone two things on behalf of Fish-Catching Take-Out.”
“First, Fish-Catching Take-Out will never draw more than 5% as a platform!”

“Secondly, we will seriously inspect and review the merchants who joined the platform. We will also draw lots from time to time to ensure that everyone can eat at ease with the take-out on the platform!”

Rui Yuchen came to Fish-Catching Take-Out’s kitchen and Gourmet Laboratory next and introduced the internal situation.

‘The clean and tidy kitchen and environmentally friendly kitchen waste processor had been shot previously by the television station. However, there were some slight changes now, giving people a better feeling.
This was not only to show the audience the health and hygiene of Fish-Catching Take-Out, but also a hint.

Naturally, the audience would wonder what the back kitchen of those takeaways looked like.

Many terrifying images naturally surfaced in his mind.

Not only that, when customers saw cheap takeaways in the future, they would not only see the cheap price, but think about the meaning behind it.

Would this subsidy disappear in the future and return to its original price?

Was such a cheap take-out made by cutting corners and even using take-out bags?

Even if they were in the same restaurant, it was quite common for take-out and food to be different, right? This suspicion was completely reasonable.

What’s more, Fish-Catching Take-Out had another ultimate killer weapon: letting other merchants join!

There would only be two outcomes under the low commission model.

First, similar food was cheaper and more expensive in Fish-Catching Take-Out.

Needless to say, they would definitely choose Fish-Catching Take-Out.

‘The second type was similar food that was more expensive on Fish-Catching Take-Out and cheaper on home take-out.

At that moment, customers would wonder why take-out was cheaper than Fish-Catching Take-Out. Would it reduce the number of customers? That should not be possible.

Perhaps, the same seller on Fish-Catching Take-Out was not selling the same food as the one on Home Take-Out? Even if it looked the same, the ingredients and the like could not be seen.

He had to choose Fish-Catching Take-Out!

Fish-Catching Take-Out had a physical store and unique dishes as support. It also had a strong reputation. It was impossible for Home Take-Out to squeeze it out through the price war in the short term.

On the other hand, Fish-Catching Take-Out’s low profit margins would always be an anchor point for home take-out. It would not be able to freely squeeze the three parties’ interests and pursue high profits.
Once the trend of public opinion formed, Fish-Catching Take-Out would naturally be like Upwind Logistics, Deposit Fitness, and Sloth Apartments, invincible!

Of course, there were side effects to doing this. Fish-Catching Take-Out would no longer be able to have the dream of monopolizing the platform and lying down to make money like Home Take-Out.

However, that did not matter. Neither the person-in-charge of Fish-Catching Take-Out nor Boss Pei had considered this route.

It was precisely because of this that Tengda could remain invincible!

Finally, the recording ended.

Rui Yuchen took off his microphone and heaved a sigh of relief. “Phew, my performance was alright, right?”

Meng Chang nodded. “Very good. Cut the video back a little and it’ll be almost done.”

“However, this video is not easy to publish immediately. The popularity of Deposit Fitness’ video has not reached the peak. If we publish the second episode now, it would slightly affect the spread. We’ll find a suitable time to publish the second episode after Deposit Fitness’ video starts to decline.”
“That would be the best effect, hitting the soft spot of Home Take-Out!”

Rui Yuchen agreed. “You can arrange these. No one is better than you at this.”

‘The two of them chatted casually for a while. The heads of Tengda’s various departments were already treating Meng Chang as one of them and trusted him very much.

Previously, everyone felt that Meng Chang was too stubborn and incompatible with Tengda’s values. They did not think that Boss Pei could turn him over.

However, Boss Pei was so impressive that he forcefully turned Meng Chang over!

It was quite ridiculous.

Rui Yuchen took out his cell phone. He wanted to check on the group of people in charge but he suddenly realized a notice.

“Basic level… person-in-charge???”