The Analysis of Competitive Strategy and Suggestions for Didi under the Background of the New Car-hailing Regulation

Abstract

The emergence of car-hailing service satisfies the need of public travel in Internet era. Didi—the representative of car-hailing service, provides users with cost-effective service and great travel experience and quickly became the leader in the field of mobile travel depending on its price advantage, market segmentation, fast respond and some other competitive strategies. However, the promulgation of the new car-hailing regulation brings many challenges to Didi. After the new regulation, it is hard for Didi to gap away significantly from its competitors in scale and price. Thus the differentiated service is the competitive focus for all platforms. So there is an urgent need for Didi to do something to make difference, such as improving the interface design of the platform and the process of order allocation, establishing exclusive ‘station’, increasing the interaction between drivers and passengers. By doing so, Didi can reduce the information asymmetry and increase the user engagement and loyalty with high quality service.