The fall of the first brother of navigation once occupied 77 shares and overtook Gaode, why no one

Mondo Social Updated on 2024-02-25

Nowadays, when people go out, map navigation has become a must-have app, and now whether it is a Gaode map or a map, the functions on it are becoming more and more perfect.

Not only can you get accurate traffic information from above, but you can also get traffic light seconds, bus arrival times, and get recommendations for the best routes during peak traffic jams.

In today's mobile phone navigation market, in China, AutoNavi and maps are often used by people, its user activity is the highest, and the market share is equally divided.

But when the clock is turned back to 2014, people widely use not AutoNavi maps or maps, there is a navigation far more than the market share of other navigators, it can be said that it is the leader, AutoNavi is eclipsed in its light.

At its peak, its market share in the navigation market reached more than 70%, but the once highly praised navigation system is rarely mentioned today.

When the former loyal users talk about this navigation, some sigh with some sighs, and some think that its current decline is all self-inflicted, so as the former "navigation brother", why will it be abandoned by users?

It has overwhelmed AutoNavi and occupied the first place in the navigation market, and the unrivaled navigation brand is Kailide, and early car navigation users should also be familiar with this brand.

Its founder, Zhang Wenxing, originally graduated from Wuhan University of Surveying and Mapping, and later taught at the university, but later in 1994, he quit his job and co-founded Kailide in December of the same year.

At the beginning, Kailide's main business was surveying and mapping, and after two years, it gradually entered the field of navigation maps, and in the era at that time, the competition in the navigation market was far less fierce than the current navigation market, so its development blueprint quickly developed.

Zhang Wenxing led Kailide to develop the first navigation engine with intellectual property rights, and further developed the navigation map.

In 2005, Kaili released its first "full coverage" navigation map, and the following year, it received more than $10 million in financing.

Its development trend is unparalleled, and in 2014, it already occupied 56The 6% car navigation market share, the competitors NavInfo and AutoNavi at that time were only 161% and 81% of the total.

Kailide also ushered in the company's most glorious moment in this year, and is considered to be the "first stock in the domestic Internet of Vehicles industry", and can have such a rapid development, in the final analysis, it is the first to walk in the forefront of market development.

Kailide founded the era of no intelligent car machine, no car network, even mobile phones are rarely able to support networked navigation, at that time the driver was in urgent need of this electronic navigation, and the emergence of Kailide brought hope to this part of the population.

It can be said to be the first electronic navigation software in China at that time, which took the lead in bringing great convenience to people's travel. And its navigation equipment is full-featured GPS, and its accuracy is very high.

In such a favorable situation, of course, Kailide also quickly entered a period of vigorous development, initially its main business is the production of navigation electronic maps and the development of related software systems.

At that time, the revenue was mainly related to the sales of related hardware, as well as to B data services and to C software services, and the official focus was shifted to the after-installation car navigation market in 2013.

At that time, the sales of domestic cars is also a peak period of rapid development, so the after-installation car navigation market is also growing rapidly, its performance occupies the first place in the car navigation market at that time, as of this year, Kai Lide has occupied the first place in the car navigation map market for 8 consecutive years.

Rapid development to 2014, Kailide's total revenue reached 20.3 billion yuan, and the net profit is much higher than that of other navigation brands, reaching 50.01 million yuan.

But unexpectedly, such a glory came to an abrupt end after this year, and in 2015, it ushered in a loss, with a loss of 1579000,000 yuan.

And after this year, its performance began to decline sharply in a straight line, and in 2016, the loss directly increased to 100 million yuan.

By 2018, it had accumulated a loss of 18.5 billion, the corresponding share price also increased from the most ** per share to 22$23 fell to $1 per share65 yuan.

It was suspended for a year, and then resumed trading in December 2018, and at the same time announced that it planned to terminate the listing.

Moreover, in the process of development, Kailid has also been deeply involved in copyright infringement cases many times, and its outstanding research and development capabilities are originally, but the frequent lawsuits for infringement and the lack of defeat and victory have still impacted people's trust in this brand.

At that time, Kailide took advantage of its own development trend and wanted to go public in one fell swoop, but after the successful listing of AutoNavi and NavInfo, which were not as good as Kailide's development at that time, the listing application of this navigation company had not been approved.

When the development trend of Kailide began to decline, AutoNavi and four-dimensional images began to develop rapidly, from 2015 when its performance began to decline, Kailide actually responded to this sudden loss, they said that there are three main reasons for the loss.

The first is because of the transformation of the company's main business, the R&D investment in the new business is increasing, the second is that the subsidy income has also decreased to a certain extent, and finally the competition in this market has gradually become fierce, so the market of the corresponding products has declined to a certain extent.

At that time, what was the new business opened up by Kailide, that is, how to plan how to increase the investment in automotive intelligent hardware, as well as the Internet of Vehicles and mobile Internet.

So what were other map navigation brands doing at the time? Is the reason for its fall really what they say it is?

Since the establishment of Kailide, it is not free like the navigation we use now, but for a fee, its price was 108 yuan at the time, and each upgrade costs about 200 yuan, and it is updated four times a year.

If you want to upgrade, the user himself can not upgrade, you need to go to the offline special store to upgrade, not only the charge is also troublesome, then the elimination of such a car navigation is only a matter of time.

In fact, if the navigation system in the market is such a charging profit model, then there is no problem with such a model, but whether it is AutoNavi or, in 2013, it fully opened the free model.

The vigorous development of the Internet and the popularization of smartphones have allowed mobile navigation to enter people's lives and rapidly update people's travel patterns.

Under the developed Internet, people only need an application software on their mobile phones to get free and real-time multi-functional and personalized navigation services.

And the routes they provide are also more precise, and the navigation brands in the market have begun to attack the development of free, sophisticated and real-time under the wave of mobile Internet.

At this time, Kailide was still complacent, maintaining a high charging standard, even if the mobile phone application software was developed later, but it still cost 50 yuan to **.

And the degree of refinement of its navigation is gradually beginning to be inferior to AutoNavi and Tencent, Zhang Wenxing has been committed to being a connector in the networked ecosystem, hoping to connect upstream and downstream resources, as well as inside and outside the industry.

When AutoNavi was competing for the free map navigation market, it was obsessed with going public, so its performance in all aspects began to decline, and the advantages of after-installed car navigation gradually disappearedThe domestic market has come to a new era of free use and updates, as well as a rich front-mounted car navigation system.

Kailide was initially able to stand out in the market because of its unique business capabilities and was at the forefront of market development.

And when it loses this advantage, it is equivalent to losing the foundation of its life, and under the impact of the new era and new waves, it can only collapse into an army.

Later, Kailide also realized this problem, so after 2016, it also began to implement a comprehensive free strategy, but at this time, AutoNavi and Tencent have already occupied an absolute market advantage, and the map navigation market has long been free of place for this brandAnother point is that when AutoNavi was actively acquired by Alibaba, Kailide did not stop the loss in time, but directly rejected the acquisition of 1.6 billion yuan by the A-share giant Xingmin Zhitong at that time.

In 2016, Kailide's performance has begun to show an obvious trend, when Xingmin Zhitong wanted to acquire three first-class companies, one of which was Kailide.

But at that time, Kailide directly refused, so the opportunity to turn over at that time was directly lost, and then Kailide embarked on an endless downhill road, and was later rejected for 600 million yuan.

"Free" also requires capital, and at that time, whether it was AutoNavi or not, there were strong supporters, so the sales model naturally dared to open and close.

Kailide did not seize the opportunity and did not keep up with the development of the times, so it finally fell step by step and disappeared in the wave of mobile Internet development.

Technology and innovation capabilities are the foundation of an enterprise in the rapid development and change of the times, and both can be said to be indispensable.

The times create heroes, opportunities are fleeting, backward and complacent is not long, high-quality and convenient service is the first choice of consumers, only always maintain user stickiness will be higher.

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