After Beating Uber, Didi Faces New Rivals in China

Chinese ride-hailing service Didi Chuxing is facing fresh competition at home, as companies such as on-demand services app Meituan-Dianping see an opportunity to leverage their huge customer base in new areas.

When Uber abandoned China last year, many thought Didi had won the battle to become the country’s dominant ride-hailing service. But challengers continue to crop up. Aside from Meituan, well-funded Chinese startups such as bike rental app Mobike are moving into Didi’s turf. 

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Internally, Mobike’s strategic partnership with Shouqi is called “Si Xi,” or Four Happiness. The partnership is supposed to make users happy with discounts, drivers happy with subsidies, the government happy that Didi won’t be a monopoly and please Mobike investors because it diversifies the business.

Rahul Harkawat and Chen Du commented on this article.
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Didi has less turf to defend, able to focus only on the ride business while Meituan is fighting on several fronts simultaneously