Chinese E-Hailing Company Didi Chuxing Is Set To Launch In South Africa
Chinese E-Hailing Company Didi Chuxing Is Set To Launch In South Africa. China’s leading e-hailing service is expanding into South Africa, challenging a market dominated by Bolt and Uber. The official launch, which brings DiDi Chuxing to Cape Town, follows a successful pilot programme conducted throughout March in Gqeberha.
Didi Chuxing Technology Co, formerly named Didi Dache and Didi Kuaidi, is a Chinese vehicle for hire company headquartered in Beijing with over 550 million users and tens of millions of drivers. The company provides app-based transportation services, including taxi hailing, private car hailing, social ride-sharing and bike sharing; on-demand delivery services; and automobile services, including sales, leasing, financing, maintenance, fleet operation, electric vehicle charging and co-development of vehicles with automakers.
On 1 August 2016, Didi announced that it would acquire Uber China in an acquisition valuing Uber China at US$35 billion. As part of the deal, Uber acquired 5.89% of the combined Chinese company with preferred equity interest which at the time equated to a 17.7% economic interest in Didi. The transaction also provided Didi with a minority equity interest in Uber.
In April 2019, Uber released a public version of its S-1 filing ahead of its planned initial public offering. As part of the filing, Uber revealed that at the time of filing, the company owned a 15.4% stake in Didi. Uber’s stake in the company was diluted (from 17.7% in 2016 to the 2019 stake) as a result of new investments from additional investors since 2016.
According to Business Insider, Stephen Zhu, the head of Didi’s international business said On 1 March, DiDi launched a limited pilot programme in Gqeberha to gauge interest in the South African market. The trial signed up more than 2,000 drivers who provided transport to 20,000 residents.
The South African version of the app has been officially unveiled and is available for download but is limited to users in Cape Town. The first phase of the expansion focuses on recruiting drivers who won’t need to split their fares with Didi noted as a “0% commission” by the e-hailing service – for the first month after signing-up on the app.
DiDi is set to be more expensive than both Uber and Bolt as its passenger service is currently limited to the “express” offering, while the other two competitors offer even more affordable options through compact rides.
