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DiDi Newly Launched Reasonably Priced Mobility Service and On-Demand Logistics Service

China’s ride-hailing giant DiDi is accelerating its transition to a comprehensive mobility service provider. Not only does Didi offer ride-sharing and carpooling services but also (e)bike-sharing and on-demand logistics services. The company is now seeking ways to further expand its business by targeting young users and small and medium-sized cities.

Even though people are refraining from using ride-hailing services due to the new coronavirus pandemic, DiDi has started a trial of a new service in 13 cities in China from July 24, 2020. It is based on the existing ride-hailing service Express, but the fare for the new service is not fixed and will be determined depending on the option that a user has chosen. Users can choose either a price-prioritized (reasonable but possibly more wait time) or time-prioritized (less wait time but more money) option. Through this trial operation, DiDi is proposing a new business model that can meet the different needs of users.

In July 2020, DiDi launched a new service brand, Huaxiaozhu, targeting small and medium-sized cities and young people amid difficulties in further expanding market share in large cities. When a user downloads the app and uses it for the first time, s/he receives a 14 CNY worth coupon. DiDi also offers users many opportunities to get a coupon, such as daily log-ins (one per day) and friend invitations (one per person), to attract more users.

While passenger transportation companies are mainly focusing on ride-sharing/hailing related businesses, DiDi is eager to tap into new businesses. For instance, DiDi launched a new on-demand logistics service in Chengdu and Hangzhou in June 2020 by hiring truck and van drivers around the areas. In an attempt to expand its market share in a short period of time, the company is offering incentives to both drivers and users.

Furthermore, DiDi is also working on the development of autonomous driving technologies equivalent to SAE Level 4. The ride-hailing giant is planning to team up with automobile manufacturers to produce autonomous driving vehicles and will adopt the cutting-edge vehicles to its mobility services.

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