Didi Global faces new competition as it battles to restore its spot in the China's app stores.
Didi Global Confronts New Competition in App Marketplaces
Didi Global, which has long held a monopoly in China's ride-hailing sector, is now facing new competition as it fights to reclaim its place in the nation's app stores following a lengthy probe by the government against it last month.'
Many Big Tech firms have been making significant investments in the area in an effort to gain a foothold in a market that Didi once dominated with a share of more than 90%. These firms include the operator of the on-demand delivery platform Meituan, telecom equipment giant Huawei Technologies Co., and Tencent Holdings' WeChat.
Customers throughout the country benefit from significant discounts due to the competitive race. A ride in Shanghai's financial district that would have cost up to 40 yuan (US$5.93) on Didi a year ago now costs roughly 25 yuan on both Didi and Meituan.
According to Zhang Yi, CEO of market research company iiMedia, China's ride-hailing market has altered significantly over the past year as rivals have eaten into Didi's existing and potential client base.
Data from China's Ministry of Transport shows that as of June, 277 ride-hailing platform providers had been granted operating permits, up from 236 in the same month a year earlier, just before Chinese officials revealed their cybersecurity investigation into Didi.
Didi continues to dominate the industry, but platforms controlled by internet behemoths are evolving swiftly, according to Jiang Shanmei, a senior analyst at research company Analysys.
However, ride-hailing orders have decreased over the last year as more competitors enter the fray. A rise of Covid-19 instances around the nation led to recurrent lockdowns and cut profitability. According to official statistics, 636 million ride-hailing orders were made countrywide in June, down from 701 million the previous month.
Related Article: Didi's $60 Billion Crash After Security Concerns Changes China Tech
Didi and Li Auto Have Declared Bankruptcy
According to a court document, the joint venture between Chinese ride-hailing company Didi and Li Auto has filed for bankruptcy, signaling the end of a four-year agreement to produce electric cars (EV).
A statement on a website managed by the Supreme Court said that the firm, which Didi controls to the tune of 51% and Li Auto to the tune of 49%, filed for bankruptcy on August 11 with Beijing No. 1 Intermediate People's Court.
Requests for comments were not immediately answered by Didi or Li Auto.
Beijing Julian Chuxing Technology was founded in 2018 by Didi and Li Auto, formerly Chehejia, to design and produce specialized smart electric cars for ride-hailing services.
It was also one of several alliances Didi formed with major manufacturers, such as Volkswagen, Toyota (7203.T), and BYD, to incorporate more EVs equipped with autonomous driving systems into its fleets.
While Didi and BYD unveiled the D1 electric vehicle they jointly created in 2020, most partnerships haven't advanced far.
Since last July, Didi has had to delist from the New York Stock Exchange due to scrutiny from Beijing over a potential infringement of data security. Reuters reported that the ride-hailing company had covertly advanced a car-making project known as "Da Vinci."
