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Didi Chuxing Technology Co., (stylised DiDi, Chinese: 滴滴出行; pinyin: Dīdī Chūxíng, pronounced [tɨ́tɨ́ ʈʂʰúɕɪ̌ŋ]), formerly Didi Kuaidi (Chinese: 滴滴快的), is a Chinese transportation network company, artificial intelligence (AI) and autonomous technology conglomerate. It is headquartered in Beijing. It provides services including taxi hailing, private car hailing, social ride-sharing, bike sharing and food delivery to users in China via a smartphone application.
(Feb 2015 – Sept 2015)
Didi Dache, Kuaidi Dache
|Privately held company|
|Cheng Wei (Founder and CEO)|
Liu Qing (President)
|Services||Vehicles for hire|
Number of employees
Formed from the merger of rival firms Didi Dache and Kuaidi Dache (backed by two major Chinese Internet companies, Tencent and Alibaba Group respectively), it was initially valued (as of June 2016) at approximately US$28 billion. DiDi acquired Uber's China unit in 2016. In December 2017, DiDi closed a US$4 billion financing round, becoming the 3rd most valuable startup company in the world after Bytedance and Uber. The company now carries 30 million rides per day.
In May 2017, DiDi started to develop an English version of its app and services. In 2018, DiDi provides ride-hailing services in Brazil under the 99 brand. DiDi launched its own-branded mobility services in Mexico and Australia, and a joint venture with Softbank Corp. to offer taxi-hailing service in Japan. Recently, it has also been involved in autonomous driving and Artificial intelligence (AI), hiring researchers and investing in these areas.
2012–2015: Founding of Didi DacheEdit
In June 2012, following eight years, working in Alibaba’s sales and Alipay divisions, Cheng Wei founded Didi Dache (嘀嘀打车; meaning "Beep Beep Call a Taxi"; or Chinese: 滴滴打车; literally: "Didi Taxi Calling"), a taxi-hailing app, [through BeiJing XiaoJu Keji Co. (小桔科技)].
The application was the initial incarnation of Didi Chuxing's ride-hailing service, and consisted of an app for consumers to request taxis for immediate pick up. BeiJing XiaoJu Keji Co. developed the app. In November 2012, Tencent invested $15 million in the company.
2015: Merger of Didi Dache and Kuaidi DacheEdit
A study in December 2013 by Analysis International, estimated that at the time Didi Dache (backed by Chinese Internet giant Tencent Holdings Limited) held approximately 55% of the smartphone-based taxi-hailing market in China (about 150 million Chinese were estimated to use their smartphones to hail taxis). According to the same study, Kuaidi Dache, backed by Alibaba Group, held most of the remaining market share. Aggressive fundraising by the two companies resulted in Didi Dache and Kuaidi Dache raising US$700 million and US$600 million from private investors, respectively, to sustain their growth in the world's largest transport market. In February 2015 the companies merged to form Didi Kuaidi.
In May 2015, Didi Kuaidi spent aggressively to compete with other startups including Yidao Yongche (Chinese: 易到用车) and Uber (of which Baidu was an investor). The company also added other features to complement its basic taxi-calling function such as new premium vehicle services, functions for carpool and designated driver transportation modes and enhanced accessibility functions for passengers with disabilities. In July 2015, Didi Kuaidi completed a US$2 billion fundraising round, bringing the company's cash reserves to over US$3.5 billion; the same month, Didi Kuaidi was reported to get 80.2%market share in car hire services. Didi Kuaidi’s existing stakeholders, including Alibaba, Tencent, Temasek Holdings (Private) Ltd and Coatue Management, participated in the round, alongside new investors including, Capital International Private Equity Fund and Ping An Ventures, part of Ping An Insurance Group Co of China Ltd. The July 2015 fundraise is ranked as the world's largest single fundraising round by any private company, as well as the largest fundraising round for a Chinese mobile internet company at that time. By September 2015, Didi Kuaidi had obtained 80% market share in private car hailing services and 99% of the taxis.
In September 2015, Didi Kuaidi rebranded itself as Didi Chuxing. In December 2015, taxi drivers protested against Didi Dache and Kuaidi Dache; both companies were forced to close their offices in the city of Luoyang.
Around the start of 2016, the company was engaged in a fierce price war with American rival Uber, which started operations in China in 2015. The competition with Uber China which operated in 40 Chinese cities led to Uber's CEO Travis Kalanick to claim the company is losing over US$1 billion annually on its Chinese operations, despite their local unit being valued at around US$8 billion after a recent billion-dollar fundraising round. This was confirmed by Uber's Chinese officials in an email to Reuters in February 2016. Despite Kalanick claiming that "We have a fierce competitor that's unprofitable in every city they exist in, but they're buying up market share...", a spokesman from Didi Chuxing responded in an email to Reuters that Uber's assertions were untrue and that "smaller competitors have to bleed subsidies to make up for their insufficient driver and rider network." The spokesperson further said that Didi Chuxing had passed the break-even mark in over half of the 400 Chinese cities they operate in.
In June 2016, DiDi closed a US$4.5 billion fundraising round, with investors including Apple Inc., China Life Insurance Co., and the financial affiliate of online shopping firm Alibaba Group Holding Ltd. This fundraising round is the world's largest equity share fundraising round by any private company, updating the previous record set by DiDi. In addition, DiDi has secured a $2.5 billion syndicated loan arranged by China Merchants Bank Co. DiDi also raised roughly $300 million in debt from China Life.
Competition with UberEdit
Uber entered the Chinese market in August 2013. However, Uber lost approximately US$2 billion trying to compete with Didi Dache and Kuai di Dache. Backers of the taxi apps, Tencent and Alibaba are rivals with China's biggest search engine Baidu, who is funding Uber to fight Didi Dache. While Baidu is competing against Didi Dache with Uber, Baidu is also fighting against Alibaba and Tencent directly.
On 1 August 2016, Didi announced that they would acquire Uber China. This acquisition valued the company at US$35 billion. With the deal, Uber acquired 5.89% of the combined company with preferred equity interest which is equal to a 17.7% economic interest in DiDi. DiDi will also obtain a minority equity interest in Uber. Under the terms of the deal, Cheng Wei has become a board member of Uber and Travis Kalanick has got a seat on DiDi's board.
2017–present: Smart transportation, AI technology and global expansionEdit
On 28 March 2017, the Wall Street Journal reported that SoftBank Group Corporation had approached Didi Chuxing Technology Co. about investing $6 billion to help the ride-hailing firm expand in self-driving car technologies," with the bulk of the money to come from SoftBank's planned $100 billion Vision Fund. On 28 April 2017, DiDi announced it closed a new financing round of over US$5.5 billion to support its global strategy and continued investments in AI-based technologies, making the company worth $50 billion.
In December, Reuters reported that Didi had raised $4 billion for a global push into foreign markets and investments into technologies such as Artificial Intelligence, in an apparent bid to challenge Uber. On 24 July 2017, DiDi pumped $2 billion into Grab, this would deepened the latter's pocket to trump Uber in Southeast Asia. Didi announced it would invest $1 billion in its auto services platform in August 2018.
On 27 August 2018, Didi Chuxing officially suspended its Hitch services due to the mugging, rape and murder case of a woman by the driver. It was the second case in a year which caused Didi to act on the issue and reform its platform with ensured safety standards. Until the business model was thoroughly reviewed the company decided to let the services remain suspended. In September 2018, Didi announced an investment of $20 million in customer service, and announced a net loss of RMB 4 billion for the first half of the year.
On 28 November, 2018, its founder and CEO Cheng Wei released a letter detailing the company’s moves to step up safety oversight and meet new government rules, including a training program for drivers. A number of Didi drivers said they were considering quitting because the cost of compliance outweighs the return. Drivers need to, for instance, study and pass an exam to attain the desired papers. They must also register their car as a commercial vehicle and scrap it after eight years. To attract drivers, Didi plans to offer training sessions and help them legalize.
DiDi serves 550 million users across over 400 cities with products including Taxi, Express, Premier, Luxe, Bus, Designated Driving, Enterprise Solutions, Bike Sharing, E-bike Sharing, Car Rental and sharing, and food delivery. A total of 7.43 billion rides were completed on DiDi's platform in 2017. Some of DiDi’s services include:
DiDi Taxi: about 2 million drivers operating in over 400 cities in China and Brazil; DiDi partners with 500 taxi companies to upgrade services.
DiDi Express: operating in about 400 cities with an ExpressPool option. DiDi ExpressPool carries over 2.4 million daily rides.
DiDi Premier: upgraded brand in 2018, accompanied by a new logo and a full suite of product and service upgrades. Highlights of the upgrades, including:
- A dedicated 24/7 customer service hotline in Chinese and English.
- New in-trip online services including in-app table booking services.
- Enhancements to existing specialist services, including premier vehicles equipped with child seats, adapted for riders with disabilities, and special arrangements for the visually-impaired traveling with a guide dog.
- Improved personalized services, such as raincoats, air purifiers and massage seats.
Designated Driving: operating in about 200 cities.
Enterprise Solution: about 170,000 corporate clients.
DiDi Bus: Launched initially in Beijing and Shenzhen as a WeChat-based trial in 2015. In Beijing, DiDi took over Kaola Bus (考拉班车) fleet and operation in September 2015. By the time of DiDi Bus's official launch in October 2015, DiDi Bus was providing 1,500 daily rides and transporting approximately 500,000 daily commuters.
DiDi Minibus: DiDi started to offer minibus rides in December 2016, aiming to provide “last three-kilometer” connection to and between public transport hubs.
DiDi Select: over 1 million rides a day.
Bike-Sharing: DiDi has added bike-sharing service from ofo to its app since April 2017. DiDi's bus service will enter into an enhanced partnership with ofo. ofo's bike-routing analytics will help refine the AI-powered algorithms in DiDi's real-time bus tracker to better respond to users’ differentiated short-distance mobility needs and design more efficient bike-bus transfer options. On 17 January 2018, DiDi launched its own bike-sharing platform, which integrates companies Ofo, Bluegogo and DiDi-branded bikes.
In January 2019 Didi announced a launch of lending and insurance services. The new services will be available for users as well as for drivers. Such measures were taken to prepare the company for tackling the challenges os 2019.
Artificial Intelligence (AI): DiDi has established the DiDi Research Institute to focus on AI technologies including machine learning and computer vision. It hopes the technologies optimise its dispatch system and route planning. A few hundred scientists work on deep-learning technologies at the institute. DiDi launched AI Labs in Beijing and DiDi Labs in Mountain View, California. DiDi Labs mainly focuses on AI-based security and intelligent driving technologies.
Big data operation: Every day, DiDi's platform generates over 70TB worth of data, processes more than 20 billion routing requests, and produces over 15 billion location points. Now DiDi is building a cloud platform with integrate anonymized data from sensors on vehicles, static information and real-time events from roads and streets with DiDi's pick-up and drop-off data, trips and carry capacity. With this platform, transportation supply and demand can be balanced efficiently, and congestion can be significantly mitigated.
Smart transportation: DiDi has launched smart traffic lights, smart transportation screen, reversible lane, thermodynamic diagrams of designated drivers, smart bus, smart traffic report and other programs in China. DiDi now helps manage over 1,300 traffic lights in 20 mainland Chinese cities including Beijing, Jinan, Wuhan and Guiyang.
August 2016: DiDi acquired Uber China and obtained an equity interest in Uber.
January 2017: DiDi made a strategic investment in 99, Brazil's largest local shared mobility provider. DiDi will provide strategic guidance and support to 99 in the areas of technology, product development, operations and business planning.
July 2017: DiDi co-led a new financing round of Grab.
August 2017: DiDi formed a strategic partnership with Taxify, a transportation network company operating in Europe and Africa. DiDi also formed a strategic partnership with Careem, a transportation network company operating in the Middle East and North Africa.
December 2017: DiDi was reportedly planning to expand operations to Mexico, perhaps Uber's most profitable market to date.
January 2018: DiDi agreed to acquire 99, a Brazilian ride hailing app, for $600 million. DiDi had already bought a $100 million stake in 99 in January 2017, which also gave it the management rights in the app. In the same month, DiDi authorized LEDI Technology Co. as its franchisee to operate taxi-hailing business in Taiwan.
February 2018: DiDi launched its new app in Hong Kong, which is an upgraded version of Kuaidi Taxi. The Kuaidi Taxi app had been used since 2015. It was also announced that DiDi will, along with SoftBank Group, begin a venture in Japan.
April 2018: DiDi starts operation under its main name in Mexico, their first market outside Asia where operates with this name. The service is offered in the city of Toluca (near Mexico City), and is seen as the biggest Uber competitor, ahead of rivals like Cabify and Easy Taxi.
July 2018: DiDi and Tokyo-based SoftBank Corp. have set up a joint venture for taxi-hailing in Japan. The service will roll out later this year, starting with a free trial run in Osaka, and expanding to Kyoto, Fukuoka, Okinawa and Tokyo.
Cheng Wei (程维), one of the founders of Didi Dache, has become the CEO of Didi Chuxing since the 2015 merge between Didi Dache and Kuaidi Dache. Cheng Wei worked in Alibaba Group for eight years before he set foot in entrepreneurship. In Alibaba, he spent his first six years in the sales of B2B business line and two years in Alipay service. After the acquisition of Uber China, he joined Uber's board of directors. Cheng Wei holds a BA from Beijing University of Chemical Technology.
Jean Liu（柳青） is the president of Didi Chuxing. Jean joined in DiDi in July 2014 from her previous position as managing director in Goldman Sachs Asia for 12 years.Jean is a member of the Harvard Graduate School of Arts and Sciences Alumni Association Council, and a member of the Board of Directors of ONE Foundation. Jean earned her B.A. from Peking University and her M.S. from Harvard University, both in Computer Science. Jean received an honorary Doctor of Commercial Science from New York University.
Employment: From 2017 to 2018, DiDi provided over 30 million flexible and equitable job opportunities for people, including a considerable number of women, laid-off workers from traditional sectors and veteran soldiers. Around 3.9 million drivers are military veterans. In addition, nearly 2.3 million female drivers work with DiDi to provide reliable mobility services, making up 10% of drivers on the DiDi platform. Among them, 80% are mothers with young children who are able to find flexible work and income opportunities through DiDi's platform. DiDi also supports more than 4,000 innovative SMEs, which provides more than 20,000 jobs additionally.
Diversity: 40% of DiDi's employees are women. In 2017, DiDi launched a female career development plan and the establishment of the "DiDi Women's Network". It is reportedly the first female-oriented career development plan in a major Chinese Internet company.
- 2015: DiDi was announced as a Davos Global Growth Company
- 2016: DiDi was included in Fortune “Change the World” list
- 2016: DiDi was named one of the World's 50 Smartest Companies by MIT Technology Review
- 2017: DiDi was nominated as one of the best five startups for TechCrunch’s 10th Annual Crunchies Awards
- 2018: DiDi was included in Fast Company's "Top 10 Most innovative Companies in China" list
- 2018: DiDi was included in the Global Clean Tech 100 list by Cleantech Group
- 2018: DiDi was named on CNBC's Disruptor 50 list
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