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Turf War Intensifies between Uber & China’s Didi

Ride-hailing services from around the world are in the race to become the most famous international player.

6 min read

Ride-hailing services from around the world are in the race to become the most famous international player.

Just a decade back, there was no concept of ride-hailing or ride-sharing service. However, these ultra-modern app based taxi services started with the advancement of technology and improved mapping system. Since then, the business of these kinds of services has seen an incredible progression. This has what made us see some of the most successful companies that have gone international serving people in many countries around the world.

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Image Source: Rideguru.com

Uber’s Role Around the Globe

Uber is a ride-hailing service with worldwide recognition. It’s headquarter is in San Francisco, California, United States. This app based taxi service has spread its network in every corner of the world and has gained a lot of success in a very short span of time making huge profits.

One of the most important factor that makes this company so successful is the way they serve their customer and train the people who drive for them. As it has the existence all around the world, so people prefer availing their service no matter if it is a new entrant in their region.



Experimenting with Self-Driving Cars

In order to make its service stand out in comparison of the other competitors, Uber has been experimenting the combination of ride-hailing service and self-driving cars. However, there is still a lot of research and testing that is to be done in this concern but things are in progress as the resources that are a part of this experiment are doing all-out effort to materialize this dream while keeping everyone safe on the road.

Image Source: Macrumors.com

Let’s Shed Some Light on China’s Didi

A Chinese app-based taxi service that serves over 450 million users in China is known as Didi Chuxing. The services that it provides are extremely diverse and all of them can be availed by using their mobile application platform.

Didi Chuxing is headquartered in Beijing and has become the most powerful and valued player in the field of ride-hailing services. It was previously known as Didi Kuaide as it was formed in the result of a merger of two companies known as Didi Dache and Kuaidi Dache and this move was backed by Tencent and Alibaba, the two tech giants in China.

Image Source: lvjie.com.cn

Acquisition of Uber China

Didi has surpassed all the records by getting about 1.4 billion rides in the year of 2015 only and it is this success that made it to acquire Uber in China. With a subtly strategic behavior, Didi Chuxing started killing off Uber’s China brand and its image in the local people. All of the power and authority expressed by this company comes from the fact that it is supported by some of the most famous global internet giants including Tencent, Alibaba, Baidu and Apple; these all firms have invested in Didi.



Innovation and Investments

Looks like Didi Chuxing does not want to leave any ground free for its competitors and this has what made it to take a leap into the field of innovation. In the first quarter of 2017, it establishes a lab in the US, where autonomous vehicles would be tested for the examination of their performance and any safety threat that they might pose to the people and traffic in their surroundings. This is an imperative move made by this Chinese company expresses that it is pretty serious about adopting self-driving cars their already existing fleet.

In order to become more powerful and strong, Didi Chuxing has started tapping many of the famous ride-hailing services from countries in different regions and it has got a highly positive response from many local and international players as they have shown interest in establishing alliance with this successful Chinese entity. Backing up their foreign alliance financially, Didi has expanded its reach and network outside of China to many parts of the world including South East Asia, India, Brazil and many other countries.

In this intense battle of becoming the best market player this Chinese ride-hailing seems to be the strongest contender and it is also working on its cooperation with Lyft which is the main competitor of Uber in the United States. All of these vital moves have been backed by an improved corporate strategy, strengthened organizational support and large amounts of funding. A company with global presence showing a rapid progression like this tends to attract investors from around the world getting noteworthy financial support.

Image Source: Koeppeldirect.com

Going Global: Didi receives over $4 billion funding

This news has left everyone in awe; Didi Chuxing is not going anywhere and is here to dominate the market as it has got a group of highly dedicated investors and firms that are in alliance with it. People are seeing massive potential in this Chinese company and an extremely bright future where there investments will be proven highly beneficial.

It is also a major setback for Uber and both are a part of the same field, working hard while trying to stay on top. According to the views expressed by the officials to some of the leading news agencies across the globe, this huge sum of money has been funded to take Didi Chuxing to the new heights of success.

It involves the smart developments of various aspects related to the transportation services that this company provides. As per the company’s spokesperson, investors from China and also from other countries seems really interested in the opportunities they see while investing in this immensely popular and the world’s second most valued startup of today’s world.

The Impact of Didi’s global expansion on Uber

When we talk about Uber and Didi Chuxing, we know that we are talking about the two businesses that are in direct competition and are involved in cold war with each other in terms of performance, profits and global position. Call it dedication, tactics or a strategy, the crown of successfully thriving organization is deserved by Didi Chuxing depending on the popularity and value that it has gain over a very short course of time. On the other hand Uber is also doing all the necessary efforts to stay in the game by hitting new markets and regions with its services. However, with all these news and happenings it can be said that the consequences are in favor of this Chinese ride-hailing service for now.

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