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Didi Chuxing: Transforming Transportation in China
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In August 2016, China's home-grown ride-hailing company Didi Chuxing Technology Co., Ltd. (Didi) acquired the Chinese assets of Uber Technologies Inc. (Uber), including Uber China's brand, business, and data. Didi had previously ventured into Uber's territory by investing and collaborating with Lyft Inc., Uber's main competitor in the United States. Didi's transformation from its beginning as a humble mobile application into a technology giant that was re-shaping transportation both within and beyond China was related to significant transformations in its social and business context. These transformations included the rapid growth of China's cities and China's status as one of the first countries to formally recognize the legality of Internet-based private car services. Looking to the future, Didi faced questions about its development in a rapidly changing global digital economy: How could it expand its products and services to the international market? Could Didi achieve the same impressive market record abroad? How could Didi continue to innovate? What was a truly sustainable business model for an online ride-hailing firm? How could it maintain its current leading position in the market?