China’s Didi buckles up for Spring Festival traffic and a possible price war with Meituan | Business News | SupChina

China’s Didi buckles up for Spring Festival traffic and a possible price war with Meituan

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Ride-hailing giant Didi Chuxing is locked in what it described earlier this month as a “war of the century” with its domestic rival, Meituan Dianping. Here’s the latest from the front lines:

  • Meituan is aiming to become more of a “super-app,” Bloomberg reports, as the company originally known for food delivery services has recently added features like a digital wallet and the ability to book karaoke rooms, while pushing further into ride-hailing.
  • Didi is selectively reintroducing subsidies to compete, according to Caixin, as drivers for the company in seven cities found themselves qualified for membership cards that came with extra pay.
  • Caixin says that the move was a “sign the sector could be headed into a new price war.” A source from Meituan told Caixin that Didi was reacting to Meituan’s successful subsidy program in Nanjing, which had “invited Didi to act tit-for-tat.”
  • Didi is expecting over 33 million passenger trips to be completed this upcoming Spring Festival (February 15–21) on its Inter-City Hitch carpool service, a number which according to TechNode is “three times higher than the passenger load from the last two years combined.”

Lucas Niewenhuis

Lucas Niewenhuis is an associate editor at SupChina who helps curate daily news and produce the company's newsletter, app, and website content. Previously, Lucas researched China-Africa relations at the Social Science Research Council and interned at the Council on Foreign Relations in New York. He has studied Chinese language and culture in Shanghai and Beijing, and is a graduate of the University of Michigan.

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