Didi's market share is close to 80%, and the market structure may have been determined

Recently, Didi is planning to launch Didi Hitch to enter the new carpooling field, which is called the "fourth entrepreneurial venture" by Didi insiders.

The previous ventures in the taxi and private car sectors have also come to a point of harvest. A recent report from Analysys pointed out that Didi’s private car market share is close to 80%, which means it has an absolute advantage.

There are many dimensions to examine a company. In addition to its leading market share, Didi’s thinking in leading the development of the Internet travel industry is actually more worthy of attention.

Didi’s private car market share is 80%

According to the latest data from Analysys International's "China's Private Car Service Market Quarterly Monitoring Report, Q1 2015", in the first quarter of 2015, Didi Chuxing (including Yihao Chuxing), Yidao Yongche and Uber ranked the top three in terms of active user coverage of China's private car service, with 80.9%, 17.5% and 8.1% respectively. (Note: Because there are overlaps in users, the combined coverage is more than 100%)

Data shows that in the first quarter of 2015, the top three Chinese private car service orders were Didi, Uber and Yidao, accounting for 78.3%, 10.9% and 8.4% respectively. As of March 31, 2015, Yidao ranked first in the number of cities covered by private car services with 74 cities. Didi covered 61 cities, while AA Car Rental and Uber only covered 13 and 9 cities respectively.

When a user prepays a fee on a ride-hailing app and can call a car at will in Beijing, but is faced with "no service in this city" in the mountain city of Chongqing, this experience is very bad. On the other hand, when a user places an order three times on a weekend night using a ride-hailing app and no one responds, this is not what a large service company should do.

Sufficient vehicles and service coverage are the focus of consumers when traveling. In this sense, Didi Chuxing ranks first in comprehensive indicators, which is also a well-deserved achievement after more than two years of hard work.

On February 14 this year, Didi Dache and Kuaidi Dache announced their merger. A month later, Didi Kuaidi released the safety and service standards for Internet private cars, including vehicle and driver access thresholds, technical monitoring methods, insurance and current compensation guarantee systems, etc., to fully unify the safety and service mechanisms of Didi Private Car and No.1 Private Car.

According to Analysys International, this standard fills the gap in the safety management standards of the Internet ride-hailing industry, and indirectly raises the entry threshold of the ride-hailing industry, so that the ride-hailing industry has similar entry, monitoring, after-sales, and compensation standards and mechanisms as other industries. At the same time, the release of this standard also marks that Didi Kuaidi has officially shifted its operational focus to ride-hailing services, and the joint release of the Internet ride-hailing safety and service standards is also a demonstration of its market leadership to its competitors.

Although the policy has not yet fully affirmed the use of private cars, especially private vehicles, in private car services, there is no doubt that Internet private cars have gradually become a popular mode of transportation for people in first- and second-tier cities, and have effectively solved the travel difficulties and service problems caused by insufficient supply. Analysys believes that the domestic private car industry will continue to strengthen its existing service level in the future, and will become one of the preferred means of transportation for residents in China's first- and second-tier cities in the future with better service levels than taxis and similar prices.

Competitors are making efforts, and the market is still subject to potential changes

Although Didi Kuaidi has taken up 80% of the orders for private car services in China, competition in this field has not stopped. After Baidu made a strategic investment in Uber at the end of 2014, the cooperation between the two parties in areas such as maps and payments has continued to advance rapidly.

In addition, Yidao Car is also trying to challenge Didi, which has higher capital, technology and scale, through another competitive path. Yidao Car has extensive cross-border cooperation with traditional car companies, making Yidao Car a platform for traditional car companies to showcase themselves. The platform-based operation idea is a differentiation strategy from Didi Kuaidi. Currently, Yidao Car has successively cooperated with Haier, Chery, and Botai Group.

Although the market share of Uber and Yidao is far behind that of Didi, Didi needs to be vigilant as these two rivals seek differentiated competitive strategies. In fact, entering the larger carpooling market is not only a necessity for Didi to expand its business, but also a way to build its own moat.

In the context of solving people's rigid need for travel, carpooling is also a favorite of the capital market, just like taxis and private cars. Regarding Didi's entry into the carpooling market, the CEO of a carpooling software once said that the entry of Didi, a big player, is a good thing for the carpooling market, which is conducive to the expansion of the overall pie and allows more consumers to know the value of carpooling. "Didi's battle line is too long, from taxis, private cars to carpooling, and we are fighting with the strength of the entire company and Didi's one line. It depends on how Didi will do in the carpooling market in the future."

In a sense, the CEO even looked forward to the entry of Didi's carpooling business. In other words, today's Didi has become a benchmark company in the field of "Internet +" travel, and its every move leads the changes in the industry.

Social responsibility below 80% share

Not long ago, on Mother's Day, Didi launched the "Visit Mom" ​​activity. Users can receive a 30-yuan Didi car voucher, calling on everyone to go home to visit their mothers on Mother's Day.

Compared with Uber's "invite celebrities to drive" marketing, Didi's Mother's Day marketing reflects family affection more. "With great ability comes great responsibility", after all, travel is a rigid need for everyone. Didi is no longer limited to a tool, but spreads higher-level concepts and beliefs more widely.

At this time, the actions of an Internet company that affects millions of people are no longer just superficial marketing, but the dissemination of ideas, and even the driving force for the positive development of society. "Make travel better", Didi hopes to bring the beauty of human nature in addition to the industrial upgrade brought by the Internet. I think this is a big pattern of Didi beyond the industry competition.

The pattern determines the height. While Didi brings positive energy to the industry, it also needs to face fierce competition. With the launch of new products such as Hitch and Express, Didi's leading position in the private car market will be more stable. Didi's competitors are making efforts, especially when all competitors regard Didi as a target, Didi also needs to further consolidate its foundation.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.