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Case Details

Case Code: BSTR557
Case Length: 16 Pages 
Period: 2013-2017   
Pub Date: 2018
Teaching Note: Available
Price: Rs.400
Organization : Didi Chuxing
Industry : Transportation
Countries : China
Themes: Business Strategy
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Didi Chuxing-Making Headway in the Global Ridesharing Market

 

ABSTRACT

 
This case is about the meteoric rise of Didi Chuxing (Didi), a Beijing-based technology startup that gained attention globally after acquiring the Chinese operations of global taxi technology company Uber, and then went on to expand its presence in the global markets. Didi, formed through the merger of two leading Chinese taxi calling services Didi Dache and Kuaidi Dache in 2015, was touted as the most valuable startup in the world. After consolidating its presence in the Chinese market with a market share of more than 90%, Didi set its sights on becoming a global player. It associated with leading players in different markets across the world. The case discusses in detail the inception and growth of Didi Dache and Kuaidi Dache, their merger to form Didi Chuxing, and Didi’s acquisition of Uber’s Chinese operations. It dwells on the global expansion strategy adopted by Didi and its entry into different markets by investing and sharing its technology with local companies. Through this strategy, Didi made its presence felt in several Asian, American, and European markets. At the same time, the company also invested heavily in developing new technologies that could help it in gaining insights into different markets. Analysts observing the growth of Didi said that it could well be on its way to becoming the top player in the global ride-sharing market.
 
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Issues

The case is structured to achieve the following teaching objectives:
  • To evaluate the business model of Didi and understand the factors that contributed to the success of Didi.
  • To examine the competitive strategy adopted by Didi.
  • To identify the challenges faced by Didi in the emerging online on-demand mobility services industry in China as well as in the global markets and explore strategies that the company might adopt to sustain itself in these markets.
Contents
INTRODUCTION
MAKING OF A RIDE-SHARING GIANT
ENTER UBER
THE MERGER
EXIT UBER
INTERNATIONAL EXPANSION OF DIDI
ROAD AHEAD
OUTLOOK
EXHIBITS

Keywords

Didi Chuxing,Didi Dache,Uber in China,Mobile taxi-hailing,On-demand mobility services,Ride-Sharing,Competitive Strategy,Global Strategy,China,Market Entry,Exit,Globalization,Technology Startup

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