Didi Chuxing Acquires Greater Market Share Than Uber In China
So Apple’s $1 billion dollar investment in Didi Chuxing has taken everybody by surprise. While many people are still scratching their heads to find out the real reason, assumptions can be made that Apple took this step to improve its base in the Chinese market. And what’s better than to invest in the largest cab hailing app in China in order to get to know the market? Tim Cook’s team is rumored to have been developing its own electric car and this can be another reason why they wish to invest in a cab hailing app.
So, does Didi Chuxing really deserve it? Or is it just a careful business strategy implemented by Apple for its own benefits? However statistics say that Didi has constantly maintained its position at number one among car hailing services in China, beating its near opponent Uber with a greater market share, about 87% of the total ride-hailing market and thus it deserves this honor by all means.
Previously named Didi Kuaidi, Didi Chuxing is a startup company which was founded by merging two famous taxi hailing companies in 2015, Didi Dache and Kuaidi Dache and it has come a long way since then. Controlling about 87% of the ride hailing market in China, Didi has surpassed its competitor US based Uber China which is trying hard to dig its teeth into the Chinese market. But with Apple backing Didi now, Uber is going to have a tough time as speculated by industrialists all over.
Didi’s clever moves against Uber
Apart from Apple’s investment, Didi Chuxing has its own measures to give a blow to its competitor Uber in its own region. It has partnered with Uber’s rivals Lyft in the US, Ola in India and GrabTaxi in South East Asia to corner it from all sides. All these ride sharing apps will let each other book vehicles sharing their platforms thus providing utmost convenience to the users. It seems like Uber is really going to have a hard time keeping up to its promise of expanding it business to 100 major cities in China. Let us hope its $1 billion investment for this endeavour doesn’t go to a waste.
Didi’s current position in China and competition with Uber
Didi Chuxing rules 87% of the Chinese ride sharing market with 300 million users in 400 major cities across China. It is wishing to expand more and hold out its first IPO in US by 2017. So far, Didi has made tremendous progress outrunning its major competitor Uber who is the king of the US ride sharing market. As it is the Chinese are not much inclined towards foreign brands, it is going to take Uber much more to make a dig into the Chinese market.
If Apple’s investment has done anything to Didi Chuxing, it has increased its confidence to get back at its competitor with renewed energy. But Uber is not sitting idle too. Lately it has received $2 billion from some Chinese investors and is desperate to grab the market of Didi. That is why Didi has joined hands with its rivals in US, India and Asia to give Uber a big blow. So it seems like Uber has everyone against it and it has to fight alone in order to take the market by storm. So far, it seems quite unlikely though. But let us see what happens eventually.
Coming back to Apple and its investment, Tim’s team has their own vested interests to flag the sale of iPhones in the Chinese market which is why they have extended their hands towards Didi Chuxing. It is indeed a clever move, given that Didi has companies like Tencent Holdings Limited and the Alibaba Group, both of which are important contacts that Apple can establish in China. However the war between Didi Chuxing and Uber is going to reach its peak after this investment and we have to see who reaches the winning line at the end of the year. So far, nothing can be said for sure. Are you rooting for Uber or Didi? Let us know in the comments section below. Have a thought inspiring working day!