It’s the age of the Uber rivals — Meet the tech startup idea, Didi Chuxing that took Uber for a ride and won
You are sitting on your couch watching TV and you get a call.
Your friends are hanging out trying to get tickets to see the blockbuster Wonder Woman movie and it will be insane if you miss out on the action.
You need to get there in a hurry, so what do you do? You pick up your mobile phone to hail a ride. You most likely click on your Uber app if you are anywhere in the world, but if you are in China, you hail a Didi.
What is Didi?
Didi Chuxing is a mobile enabled ride hailing service like Uber but has China as its principal market.
Ride hailing apps, an idea that never would have crossed our minds in the last 10 years is now the norm in the world’s most sophisticated markets.
Uber went head to head with Didi Chuxing and bowed out gracefully as the later had the right arsenal in its armoury.
Startup: Didi Chuxing
Founded: September 2012
They did Uber, we can do ours.
Headquarters: Beijing, China
Vision: To be the world’s largest transportation service platform. (imagined by us).
The Pitch (The idea in 20 words)
Didi Chuxing is a ride hailing mobile application offering a host of transportation services and solutions to individuals and enterprises.
Mobile transportation, Ride hailing software, Mobile app
- Deployment of a mobile first ride hailing application
- Didi is offering of a plethora of services including taxi hailing, private car hailing, social ride sharing, chauffeur services, Didi bus services, Didi test drive and Didi Enterprise solutions.
- The country’s stifling of foreign companies through austere policies is a major factor in enhancing Didi’s growth against its rivals.
- Didi Chuxing is a strategic merger between two of China’s largest ride hailing services to create the world’s largest mobile transportation platform.
- Its acquisition of Uber China for $7 billion in stock to ease off competitor pressure.
- Didi’s ability to raise investor funding to propel its growth is one of its most outstanding strategies.
Its revenue model consists of users paying for services rendered according to the length of service multiplied by Didi’s standard meter charge for each service.
Growth and Market prospects
Didi boasts 300 million registered users who book up to 14 million rides daily with 15 million drivers who delivered 1.4 billion ride services in 2015 alone.
Didi Chuxing remains one of the most funded companies in tech history raising huge amounts from investors;
Total Funding: $15.74 billion
Didi Chuxing has successfully raised investment funding from the world’s biggest tech companies, venture capital firms, and financial institutions. Some of its investors include;
- China Life Insurance
The future strategy of Didi Chuxing entails development of next generation driverless car and security technologies through its Silicon Valley based artificial intelligence lab.
The ride hailing service industry though young is tending towards sophistication with a host of well funded players who are willing to drive costs lower and lower in order to own the largest share of any market it is playing in. Entrepreneurs and capitalists alike smell the profits in the air and the industry is becoming a rat race.
However, there is room for entry for well-funded innovators in local, non-established markets who have the tenacity to build and take on already existing industry giants.
Like Uber and every other ride hailing application, Didi Chuxing disrupts the once monopolized and expensive taxi industry.
Opportunity for Idea Creators
This is an opportunity for idea creators. But one must realize that to succeed in this market, having the right funding to promote your app services, drive down costs and retain customers is critical to sustainable success.
On the look out to create more value within this industry sector way should be;
- Private capitalists
- And any other crazy head who thinks and can, can make things happen
With the perfect conditions, anyone can ride on the strategies of Didi Chuxing to create a lucrative ride hailing service.
For more startup ideas and tech strategy, visit https://babeonideas.com