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Ride-Sharing Company Didi’s Only Way to Survive
Article

Ride-Sharing Company Didi’s Only Way to Survive

My Forty Two, 2018

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Editorial Rating

8

Qualities

  • Analytical
  • Innovative
  • Applicable

Recommendation

Meituan, a Chinese life services and group-buying company, recently launched a ride-hailing service in Nanjing and Shanghai, challenging industry leader Didi Chuxing. In this article, Qu Kai and Ji Wenyi, writers from WeChat wemedia platform My Forty Two, dissect the factors shaping the ride-hailing service industry and explain why Didi needs to rethink its long-term strategy to remain profitable. getAbstract recommends this post to global investors, as well as business analysts and start-up enthusiasts.

Take-Aways

  • The barrier to entry in China’s car-hailing industry is low. Capital alone can’t preserve Didi Chuxing’s monopoly.
  • Food-delivery service and group-buying company Meituan has competitive advantages over Didi: It has an existing infrastructure, resources and a solid customer base.
  • Drivers are opportunists. They will work for the company that pays them more.  

About the Authors

Qu Kai and Ji Wenyi are writers for My Forty Two, a WeChat wemedia account analyzing business, technology, venture capital and the humanities.