A: I think the market is actually working in favor of Ctrip, because at the end of the day, it’s still a volume entry game. You may be asked to download a hotel app, but honestly how often will you use it? Ctrip has an unparalleled inventory of every travel product. I think the game is done.
Q: What about other players like Mafengwo?
A: They can still make money as an independent travel service firm, but they have no chance to play the Ctrip game.
Q: How does China’s travel market and competitive landscape compare to that in the U.S.?
A: China is a fast-growing travel market, while the U.S. market is more mature. Ctrip has a lot more room for growth, because China’s travel market is growing at north of 20% every year.
Q: Didi Chuxing, backed by GGV and many others, is facing great challenges from new ride share regulations in China. How can they cope?
A: Didi needs to work with the government. Some of the new regulations don’t make sense to me. Why would the government stop the flow of labor and talent? Even though I understand the motivations of the regulations, but China should be more of a market economy.
Q: GGV backed a number of online education firms, including Zuoyebang, Neobear and Zhan.com (Xiaozhan Education). But it seems online education companies are rushing to go offline?
A: I don’t think that there is an online only or offline only business model. Every aspect of the business, whether it’s real estate, education and auto services, it’s going to be a blend of offline and online. But more important, it’s about using technology to drive an adequate ratio between offline and online, and making the services more efficient.
Q: What’s your hope for these companies?
A: I hope that they can scale and build a (great) business. Sometimes it’s good to IPO, and sometimes it’s good to do M&A.
About Jixun Foo:
Jixun Foo is a managing partner at GGV Capital and focuses on the online travel, mobile transportation and on-demand service sectors. He led GGV’s investments in Qunar, Youku-Tudou, UCWeb, Didi Chuxing and Mogujie-Meilishuo. Previously, Foo was a director at Draper Fisher Jurvetson ePlanet Ventures, and worked at the National Science & Technology Board of Singapore and Hewlett Packard.