Analysis of Didi Dache and Kuaidi Dache Merger: Operational Strategies, Motivation, and SWOT Analysis

Abstract

In recent years, the scale and number of mergers and acquisitions (M&A) between companies have been steadily increasing, with M&A becoming the primary choice for expanding their businesses. However, M&A between internet companies often involves many uncertainties. This paper first analyzes the operational strategies and merger motivations of Didi Chuxing and Kuaidi Dache (now DiDi and Dida respectively), and then applies the SWOT analysis method to analyze the strengths, weaknesses, opportunities, and threats of this merger event. Finally, the paper summarizes the pros and cons of this merger event and provides recommendations. The research findings of this paper indicate that the merger motivations of this merger event mainly include reducing market competition pressure, achieving resource integration while expanding market share, and seeking more development opportunities. The SWOT analysis shows that the strengths lie in resource integration and internationalization, the weaknesses involve strategic risks, the opportunities can be harnessed through synergy effects, and the threats involve potential negative impacts of monopolies on the market. By formulating the correct strategic theories, enhancing core competitiveness, and effectively utilizing synergy effects, the success rate of corporate mergers and acquisitions can be improved, providing feasible ideas for M&A in China's ride-hailing industry.