China's Ride-Hailing Sector Readies for Competition as New Players Enter Arena
Liao Shumin
DATE:  Jan 15 2018
/ SOURCE:  Yicai
China's Ride-Hailing Sector Readies for Competition as New Players Enter Arena China's Ride-Hailing Sector Readies for Competition as New Players Enter Arena

(Yicai Global) Jan. 15 -- The world's largest ride-hailing platform has dominated the Chinese market since it bought out Uber Inc.'s local unit in 2016, but competition could heat up as a number of firms look to make their way into the sector.

Didi is facing new rivals in the form of Meituan Dache, Yidao Yongche and an upcoming collaboration between bike-sharing giant Beijing Mobike Technology Co. and CAR Inc., China's largest car rental provider, financial news outlet the Economic Observer reported.

One Beijing passenger told the reporter that after booking a taxi through Didi, the driver recommended he download another car-hailing platform, Dida Pinche, as it offers a lot of discounts. One such price cut is its half-price Thursdays.

In a market where Didi occupies a 90-percent share, such matters would seem to have minimal impact, but the ride-hailing giant is noticing some subtle changes.

Didi is well aware of how to attract new users, but Cheng Wei, founder, may not have expected such a rapid wave of new competitors after it chased Uber out of the country.

The firm drove Uber from its home market in 2016 by buying its China brand and assets, and has now locked horns with its arch-rival around the world. The turf battle in China cost both billions.

"Didi has defeated competitors with its mass amounts of capital," an unidentified analyst told the Economic Observer. "It has a majority market share, but has not distinguished itself from other companies. Passengers constantly complain about its products and user experience."

"New competitors in the market may be a result of deliberate regulatory relaxations to increase competition and stop Didi monopolizing the sector," another unidentified analyst said.

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Keywords:   Didi Chuxing,Meituan,Yidao