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

Business & Technology

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.”