Competitive Market and Prospect of Online Car-hailing: Taking the Merger of Didi and Kuaidi as an Example

Abstract

Didi Dache and Kuaidi Taxi were listed in Beijing and Hangzhou in September and August 2012, respectively, and after a fierce game, the two companies announced their merger on February 14, 2015. This paper uses the case analysis method to analyze the competition and development prospects of the ride-hailing market by taking the merger of Didi Dache and Kuaidi as an example. The study found that Didi Dache and Kuaidi Taxi, as leading companies in the ride-hailing industry, grabbed most of the market share. The merger of the two companies is conducive to integrating market resources and improving resource utilization; Effectively accumulate funds and reduce the pressure of listing; Avoid strategic mistakes and avoid operational risks. In the future development, Didi Dache and Kuaidi Taxi should strengthen market supervision and put an end to providing services at unreasonable low prices, bundled sales, price discrimination, etc. In addition, the two companies should strengthen the screening of drivers, arrange training on time, improve driver service awareness, improve customer experience, and promote the sustainable development of the ride-hailing industry.