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1. Strategy:
Uber used the strategy of hiring private car owners. But Didi Chuxing persuaded taxi operators and car rental companies to allow drivers to use their vehicles for them. The result was Didi Chuxing had over 3 times the number of car bookings as Uber.
2. Chinese Market:
China is an incredibly complex market that differs culturally, politically, and economically from the west. This is the reason that companies like Amazon and eBay have also struggled to make inroads in China. The Chinese legal structure and regulations are vexing coupled with the underdeveloped infrastructure and banking systems relative to West.
3. Aligning with Local partners:
Uber tried entering a risky market alone whereas tying up with a local company which have better handle on the prevailing scenario would have been beneficial.
4. Understand customer preferences:
Chinese people don’t use credit cards and favour paying in cash. Uber came up with a card based payment system while local players offered the option of paying in cash.
Also, Chinese riders were happy and able to trust the associations of local players (Didi) with taxi drivers rather than Uber’s association with individual car owners.
5. Other services:
Didi incorporated WeChat’s payment system which was very popular. Also, Didi added car-pooling and bus-hailing services welcomed by Chinese users.
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