Didi challengers rush to get ahead in ride-hailing market as industry leader remains snarled in regulatory traffic
- Beijing’s decision to punish Didi by kicking its app from stores and a ban on new clients has opened a window of opportunity for others
- Disruptive tech such as autonomous driving could also offer opportunities for existing players and new entrants to forge ahead in the ride-hailing market
A number of ride-hailing challengers are redoubling their efforts to grab market share from Didi Chuxing, the undisputed market leader currently under a Beijing-directed cybersecurity investigation, in a sign that Didi’s troubles may not end with the results of the regulatory review.
While few players can mount a serious challenge to Didi, which controls about 90 per cent of the market in China, Beijing’s decision to punish Didi by kicking its app from app stores and banning it from accepting new clients in the last two months, has opened a window of opportunity for some operators to catch up, analysts say.
“The Didi probe has offered rivals an opening to snap up new users,” said Jiang Xinwei, research director at consultancy Analysys. “Some small ones, with 3 or 4 million users, may see their user base increase by 10 per cent during this time, an unprecedented opportunity.”
However, Jiang added that Didi’s leadership likely remains unbreakable “because it’s staying ahead in terms of technology, the number of cars and its presence in Chinese cities”.
Cao Cao Mobility, backed by carmaker Geely, has secured billions of yuan in new funding as competition in the Chinese ride-hailing market heats up.