Is the calling economy model a big bubble? Let's look at the current status of financing

Editor's note: In the third quarter of 2016, the number of investment transactions for start-up companies with call services increased by 20%, rebounding from the troughs in two consecutive years, and the increase in trading volume was attributable to the increase in small investments in other countries in the world. In addition to the United States, China and India, other regions have increased their investment. This article analyzes CB Insightâ€™s report on the financing status of hot service companies with call services. The article was compiled exclusively by Lei Fengwang (public number: Lei Feng Network) and was not reprinted without authorization.

Calling service company means that users can use the mobile phone to order services or order goods at any time, and they can receive things or services on the same day. Examples include taxi services (Uber), Instacart, and TaskRabbit.

Giants with service start-up companies, including Uber and Didi, traveled to Ubud in China for US$1 billion in the last quarter, bringing the total volume of transactions to a record high. Therefore, compared with the previous quarter, the proportion of Didi and Uber's total transaction volume in this quarter decreased.

Quarterly transaction volume and total transaction amount

The total number of transactions for start-up companies with call services in the third quarter was 77, compared with 66 in the previous quarter, which is the same as the number of transactions in 2015. From 2012 to 2015, the number of transactions has been fluctuating, so whether the growth in the third quarter of this year is anomalous data or long-term growth momentum remains to be further observed.

Although the number of transactions rebounded during the third quarter, the total investment amount has been declining. The total investment in the second quarter was $6.6 billion, compared with only $3.8 billion in the third quarter.

The third quarter investment rankings are as follows:

Didi travels to Uber China for US$1 billion;

Grab (Uber's competitor in Singapore) received US$750 million in investment from Softbank Group in F-round financing;

Airbnb received US$555 million in investments from Google Capital and Technology Crossover Venture in F-round financing;

Go-JEK, a courier services company based in Indonesia, obtained US$550 million in investments in Series B financing;

Deliveroo, a British food delivery company, received $275 million in financing in the E round of financing.

Because of Uber and Dribbling, Airbub, the three giants, accounted for most of the investment amount of the entire industry, and in most cases, the total amount raised by these three companies accounted for 50% of the entire industry, so just list this separately. The comparison of the financing status of the three companies with the entire industry:

Financing was the largest in the third quarter of 2015. Dickey Bank obtained US$3 billion in financing and Uber obtained US$2.2 billion in financing.

The second quarter of 2016 accounted for the largest proportion. The investment funds obtained by the Big Three accounted for 79% of the total investment amount of the entire industry. Uber obtained US$3.5 billion investment from Saudi Arabian Public Investment Fund; and the Didi trip obtained through three rounds of transactions. 1.7 billion U.S. dollars.

In the third quarter of 2016, the total investment of the three giants in the industry fell to 44%, due to Grab, Indonesia's taxi service software, obtaining US$750 million in F-round financing.

Annual transactions and total investment

Since 2015, investment in start-up companies has increased dramatically. Even though the number of transactions has fallen by 60%, the total amount of transactions has doubled. The investment boom this year has subsided. In the first three quarters of 2016, the total number of deals for O2O startups was 224, and the total value of the ventures reached 12.2 billion U.S. dollars. According to the current growth rate, the total number of transactions in 2016 will be about 300 times, and the total investment will be around 16.3 billion.

Countriesâ€™ investment in start-up mode companies

Since 2012, the United States has begun to reduce its investment in start-up companies with call-for-service services. In 2012, it accounted for 58% of global transactions, and in 2016 it accounted for less than 50%.

While reducing investment in the United States, India is increasing investment. In 2015, Indiaâ€™s total investment in call service companies accounted for 22% of the entire transaction amount. It also accounted for 13% in the third quarter of this year and only 3% in 2012. The main investment company in India is:

Taxi software Olacabs (the most famous call service company in India) has now raised 1.8 billion U.S. dollars in investment, most of which were raised in 2015;

Grofers, a grocery transportation service startup, has raised $166 million;

Swiggy, a catering and distribution service company, raised $76 million;

The grocery distribution company PepperTap raised 52 million U.S. dollars.

China's investment in start-up companies with call services was very stable in 2014 and 2015, but it also began to show a declining trend in 2016. Similarly, investment in the UK also showed a declining trend since 2012.

However, other countries in the world have increased their investment in start-up companies with call services. The total investment in other countries reached a new high in 2016, accounting for 28%, of which the fastest-growing countries are France, Spain, Canada, and South Korea.

Via CB Insight