In: Operations Management
Strategy(China’s Didi Chuxing Offers Ride-Hailing Service in Mexico) write a one page research essay on this topic article
Headquartered in Beijing, DIdi is biggest transportation services provider for more than 450 million users across over 400 cities in China. Didi Chuxing is the one of the biggest rivals of Uber in China. It provides services including taxi hailing, private car hailing, Hitch (social ride-sharing), DiDi Chauffeur, DiDi Bus, DiDi Test Drive, DiDi Car Rental, DiDi Enterprise Solutions, DiDi Minibus, DiDi Luxe and bike-sharing to users in China via a smartphone application.
Uber had entered the Chinese market in August 2013. Then, Didi Chuxing was one of the biggest rivals of Uber in China. However, Uber lost approximately US$2 billion dollars trying to compete with Didi Dache and Kuai di Dache. Both Didi and Kuaidi, two local Chinese ride-hailing apps, are estimated to control close to 80% of the market with China being one of the biggest markets in the world. Later, in the year 2016, Didi had acquired Uber China.
The technologies that Didi use are - Artificial intelligence, Big data, and Smart transportation.
Through Artificial Intelligence, DiDi has established the DiDi Research Institute to focus on AI technologies including machine learning and computer vision. This technology optimises its dispatch system and route planning. A few hundred scientists work on deep-learning technologies at the Didi research institute.
With the Big data, DiDi's technology platform generates over 100TB (Tera Bytes) worth of data, processes more than 30 billion routing requests, and produces over 25 billion location points. Didi built a cloud platform which integrates anonymized data from sensors on vehicles, static information and real-time events from roads and streets with DiDi's pick-up and drop-off data, trips and carry capacity. With such cloud platform, transportation supply and demand can be balanced efficiently, and congestion can be significantly mitigated.
With the smart transportation, DiDi leverages its AI capabilities to help cities develop smart transportation solutions. DiDi has launched smart traffic lights, smart transportation screen, reversible lane, thermodynamic diagrams of designated drivers, smart bus, smart traffic report and other programs in few main cities.
Now, Didi is planning to take the ride-hailing service out of the China. As a first step, it has launched the services in Mexico. Uber is one of the Mexico's biggest transportation services provider and Didi's arrival will be biggest arrival for Uber in the Mexico.
Presently, Didi has unveiled the Didi Express service in the capital city of the State of Mexico, Toluca, which is an urban hub about 40 miles (60 km) west of Mexico City and is at an advantage by adding a number of new safety features for drivers and riders. Didi aims to roll out its services to other cities as well in Mexico bringing forth toughest competition to the Uber technologies.This is the first time, Didi will be able to operate its own ride-hailing service under the same name "Didi" outside China.