DiDi Announces Independent Mobile Transportation Brand Huaxiaozhu
Targeting at young customers and less developed cities, Chinese giant mobile transportation platform DiDi has established a new brand called 'Huaxiaozhu' (Chinese: '花小猪'). Huaxiaozhu differentiates itself from conventional DiDi by offering more discounts and thus lowering the price to several yuan per one ride. Now, Huaxiaozhu is having a test-run in four cities in China.
DiDi realizes the great potential of the mobile transportation market in tier 3 and tier 4 cities, which currently have a low penetration rate. Moreover, DiDi captures the psychological characteristics of the local youth, the largest group that uses mobile devices to move intracity. DiDi also has its Premier (礼橙专车）services targeting high-income consumer groups. Clear customer segmentation will be beneficial for DiDi's widely anticipated IPO.