Thank you for subscribing.

Please check your email to confirm.

Unsubscribe success..

You already subscribed and confirmed.

Please check your email.

You already subscribed.

Please check your email to confirm.

Car-hailing Unicorn DiDi Expands Car Sharing Branches
Car-hailing Unicorn DiDi Expands Car Sharing Branches
Young people sitting on car. Photo: Credit to DiDi
Associated Company
Didi Chuxing Didi Chuxing

Apr. 12, 2019 /EqualOcean/ - DiDi’s sub-brand Xiaojuchefu (小桔车服, Xiaoju Auto Service) officially announced that DiDi users in Shenzhen, Changsha, Zhuzhou, and Xiangtan cities can use DiDi Car Sharing service without paying the deposit.

DiDi Car Sharing set 60 pick-up points in Shenzhen and 40 pick-up points in each of Changsha, Zhuzhou, and Xiangtan. Chinese largest car rental company, CAR (神州租车), launched its car-sharing business in 2018, and at the end of 2018, the car sharing coverage expanded to 36 cities from different tiers. DiDi Car Sharing has stretched into 10 cities since 2018.

Both DiDi and CAR launched the car-sharing service in 2018, but CAR had long been practicing car rental business. CAR initiated the car-sharing service to effectively use the not-in-use rental cars, and according to its 2018 annual report, nearly 30% of carsharing users converted to car rental users. Car sharing is an extra entrance for CAR to acquire customers. The situation is different for DiDi since DiDi is a car-hailing company and it has served over 500 million customers in past practice.

DiDi’s car-hailing services generated CNY 108 million (USD 16 million) losses in 2018 but its user traffic outdoes other car service providers or platforms. In Analysis’ report, DiDi has an absolute leading position in customer base because the DiDi’s penetration rate of active users maintained in a range from 8% to 12% from January 2017 to May 2018, while others stayed below 2%.

The massive user traffic and high penetration rate are favorable conditions for DiDi to expand car rental and car sharing business. Based on the already-built customer pool, the car rental service is a function added to the original ride-hailing service instead of access to attract more users, though it might have the ability as well. The main goal to add car sharing and car rental services is to actively and effectively utilize the traffic and diversify DiDi’s income sources by building a multi-dimensional ecosystem with featured auto services from financial to auto care.

Back to the four cities, three are in Hunan province. In Hunan, CAR has 166 pickup points distributed in 16 cities dated the article published. DiDi opened 120 pickup points in three cities, which has denser pickup points in each city comparing to CAR. In Shenzhen, Shenzhen has 75 CAR pickup points while Guangzhou has 202 CAR pickup points. DiDi Car Sharing did not choose Guangzhou to launch the car sharing but Shenzhen with 60 pickup points.

Though it is interesting that DiDi chose three cities from Hunan to launch the car sharing business, the siting selection is reasonable. Avoiding a competitive market in Guangzhou, Shenzhen, which is a tier-1 city, is more ideal for DiDi to start the business that the market is not fully developed.

Enterprise Information

Didi Chuxing is a mobile transportation platform, offering a full range of commuting options to 400 cities in China.
CATEGORIES: Auto, AI
Last Funding Type
Strategic Investment
Number of Employees
5001-10000
Number of Funding Rounds
20
Total Funding Amount
21.85B

Enterprise Information

Didi Chuxing
Didi Chuxing is a mobile transportation platform, offering a full range of commuting options to 400 cities in China.
CATEGORIES: Auto, AI
Last Funding Type
Strategic Investment
Number of Employees
5001-10000
Number of Funding Rounds
20
Total Funding Amount
21.85B

Reach the Author!

Ask the author questions about the copied text

MOST READ

THE LATEST

Any Question

EqualOcean is a leading industrial tech media and investment research company that focuses on technological and industrial innovation in China.

We aim to assist Chinese entrepreneurial enterprises to break into the global market and provide overseas investors, VCs, and enterprises with a deeper understanding of China's business environment and to seize opportunities in China.

Join over 800,000 of your peers