Expert Chaslau Koniukh
  • Biography
  • Analytics
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Market terminology
  • Stock Market
  • World exchanges
DiDi Chuxing

Chinese taxi service DiDi Chuxing: a struggle for the market

19.06.2020
2 min read

Chinese analogue of Uber – DiDi Chuxing was able to create the largest network of 21 million drivers in 6 years. Its users are 450 million people, who order 30 million trips within a day. This taxi aggregator is considered the second most expensive startup in the world, yielding only to Uber.

As a taxi splitter DiDi Chuxing managed to beat the competition

Chinese taxi service DiDi Chuxing is estimated at $56 billion, the amount of cash in this business is $ 12 billion. It is often called the “Chinese Juggernaut” and does not cease to be compared with Uber.
The opportunity to call a taxi online in China appeared in 2012, when DiDi Dache (translated as Beep Beep Call Taxi) and 30 other such startups began providing services in Beijing. The idea of the mobile service belongs to Cheng Wei, who was 29 at the time. The first problem that arose when launching the application was the lack of cars. Nobody wanted to work with a company that did not have an official license to run a transport business. Only a month later, they managed to find a small company that was providing service for 200 of their cars.
DiDi managed to get ahead of the competition thanks to the right approach. Cheng Wei chose a target audience of young taxi drivers with smartphones that were good with digital technology. Unlike other similar services, he distributed his application free of charge and paid the taxi drivers extra for a new installation of the program on their mobile phones.

DiDi Chuxing

The first institutional investor of the taxi was GSR Ventures venture fund. He realized the potential of the startup and invested $3 million in it. Then there was Tencent and its $15 million, but DiDi got a competitor – Kuaidi Dache, which was invested by Alibaba Internet Corporation. The competition for the market between the two services lasted until 2015. Providing discounts and subsidies to users financially exhausted the company and they decided to unite. Cheng Wei became the head of the new business, and his share was 60%.
But then another difficulty arose – Uber, which began to function in 60 cities across the country. A similar strategy was chosen – more discounts and subsidies for taxi drivers and users. DiDi managed to attract investments from Apple and Alibaba, and Uber gave up. Now Uber China is controlled by DiDi. After that, capital investments from large companies were actively poured into the startup, and the service started to develop and expand actively. Now it offers 11 services, including car maintenance and bicycle rental system.
Last year, there was a series of murders. A taxi driver who was called through DiDi killed women. After that, the company’s management began to implement measures to improve user safety.

Share
0
Previous Post Chaslau Koniukh on the analysts' opinion on the key stake size change soon Next Post Fred Smith: the man who gave the world express delivery

You Might Also Like

PNC Financial Services Group
Companies and corporations
Financial Corporation PNC Financial Services Group
24.02.2021
Berkshire Hathaway Inc
Companies and corporations
Berkshire Hathaway Inc: evolution from a textile manufacture to an investment holding company
26.11.2020
Glencore International
Companies and corporations
Glencore International: the company sector and structure
06.12.2020
JPMorgan Chase Co
Companies and corporations
JPMorgan Chase Co – a giant in the market of financial services
18.08.2020
Prudential Financial
Companies and corporations
American Prudential Financial Corporation: a giant with a scandalous reputation
25.01.2021
Caterpillar company
Companies and corporations
Caterpillar: from its founding history to its modern successes
04.02.2021

Recent Posts

  • 1company Michelin
    How the Michelin company developed: history of the French brand
    06.03.2021
  • 2fall of the dollar
    Experts from Sberbank Investment Research: Will there be a drop in the dollar rate?
    05.03.2021
  • 3laddering
    Laddering: essence of tactics and use for investment and IPO
    04.03.2021
  • 4Nord Stream 2 pipeline construction
    Germany supports construction of the Nord Stream-2 gas pipeline
    03.03.2021
  • 5Flow of direct investments
    Foreign direct investment flows declined as a result of the pandemic
    02.03.2021

Popular Posts

  • Closing of the New York Stock Exchange: What will happen to trading operations? 0
  • US largest refining company Valero Energy Corporation 0
  • Nasdaq Inc has tightened its public offering rules for foreign companies 0
  • Capital Economics analysts gave a disappointing forecast of European economy 0

Social

Editor's Picks

Chaslau Koniukh

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

company Michelin
How the Michelin company developed: history of the French brand
06.03.2021
fall of the dollar
Experts from Sberbank Investment Research: Will there be a drop in the dollar rate?
05.03.2021
laddering
Laddering: essence of tactics and use for investment and IPO
04.03.2021

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh is an international financial expert, a professional investor, an experienced analyst and a practicing trader. He advises European entrepreneurs; holds lectures on investment topics; is the author of scientific articles on work at the stock market.

Recent Posts

  • 1company Michelin
    How the Michelin company developed: history of the French brand
    06.03.2021
  • 2fall of the dollar
    Experts from Sberbank Investment Research: Will there be a drop in the dollar rate?
    05.03.2021
  • 3laddering
    Laddering: essence of tactics and use for investment and IPO
    04.03.2021
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Youtube
  • Instagram
  • Biography

Expert Chaslau Koniukh: brief biography and path of formation

Let’s Socialize