One could be forgiven for thinking that after purchasing Uber’s China operations, Didi Chuxing—which now boasts over 300 million users and over 80% of China’s market—would be on easy street. But things are never that simple in the Chinese market. Figures have shown Didi is losing users and drivers. Under strict Chinese local governments’ new policies, Didi may face bigger challenges than Uber China. Meanwhile more people cast doubts over its business model. Boasting a sharing economy model, car-pooling, the company now relies more on providing car-hailing services with prices lower than taxis to maintain its scale. Once the subsidies withdrew, users walk away.
The sharing economy has been threatening traditional industries in the West. Now it’s gaining a foothold in China.
In just about three years, Yidao Yongche has carved a niche for itself in China’s car rental market. And now it is going global.
Uber has plunged headlong into China’s immensely complex and hypercompetitive transportation and taxi app market. Can it win?
This week, the BYD stock price fell sharply, as did Geely’s; Baidu invested in ride-sharing company Uber; and China’s factory activity slowed further.
This week, taxi app Didi Dache secured funding of more than $700 million, easily the biggest private investment in China’s mobile internet sector; LeTV announced an audacious plan to get into Tesla’s territory; and China’s import and export numbers slowed.
Why own when you can share? Understanding the dynamics of the sharing economy which, by some estimates, will become a $115 billion industry by 2016.
This week, figures from the HSBC/Markit PMI implied that the Chinese economy might finally be on the path to the much-need structural change; local government financing got a new breather; and Baidu launched its Google Glass competitor, Baidu Eye. The Broader Picture Last week, a flash Purchasing Manager Index (PMI) reading from HSBC and Markit […]