Product details

The case study captures the dynamics of Chinese ride-hailing services since its beginning in the year 2012. It started as competition between two local players, Didi Dache and Kuaidi Dache, each backed by a Chinese technology company. The market became more competitive with the entry of Uber in China with all three companies resorting to a series of strategies and counter-strategies to outperform the others. Uber had to manoeuvre against the Chinese regulations as well. The intense competition catalysed consolidation in the market and the two local players Didi and Kuaidi merged to form a new company Didi Chuxing that had a virtual monopoly in the Chinese ride-hailing market. After a couple of unfortunate incidents with Didi passengers, the Chinese government came heavily on the industry and imposed strict regulations for monitoring and security. Simultaneously local competition also grew as a number of Chinese companies diversified into ride-hailing services. On one hand Didi Chuxing had to compete in the Chinese market to protect its market-share. On the other hand it was exploring opportunities for expansion in the international market. The case captures this growth dilemma and the way forward for the company.