After a Fall From Grace, Didi is Still on Top, but Barely

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When Didi was first removed from app stores in July, many believed the time was ripe for the app's competitors to flex their muscles, even going so far as to say they'd perhaps crush Didi to pieces. Two months on from Didi's temporary deplatforming, and the app has continued to dominate the market, with their number of orders increasing by 13.1 percent in July. Didi’s outstanding performance has been a huge slap in the face for many who dared suggest the company would soon go bankrupt. It also begs the question: why is Didi still so popular?

It'd be foolish to think Didi’s ride-sharing empire was built in one day. Even with competitors like Meituan and Gaode trying to grab the lion’s share in the market with deals like RMB 260 gift packages and 50 percent discounts, it'll still take a long time for them to be able to provide customers with an experience comparable to that of Didi.

Meituan's package deals for first-timers

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How Competitive are Other Ride-Sharing Apps?

Customers simply want a service that will allow them to travel from A to B as quickly as possible. If other apps fail to pick up customers in a timely manner, they become less competitive. I tried Meituan, one of Didi’s biggest challengers, to find out how long it'd actually take to get a ride. I set my destination to Sanlitun SOHO, and on the app, it showed I'd be able to get a ride within 4 minutes. But after waiting nearly 15 minutes, the platform was still telling me to wait patiently while they found a driver.

I still haven't got a car after waiting for this long... So I gave up.

For a bit of comparison – and to ease my thinning patience – I placed an order through Didi at 2.28pm. The platform told me my wait time would be about 3 minutes. My ride arrived in less time than that. One thing I learned from this exercise: competitors might want to brush up on time taken finding a driver if they're serious about winning over more customers.

In less than 3 minutes, I got my didi ride.

Riders Aren't Used to Other Apps

Didi already has a solid fanbase, and many loyal customers aren't too interested in quickly switching to other apps. Plus, riders still have the option to use the app so long as they haven’t uninstalled it. In fact, many people I talked to who haven't already deleted the app, won't consider switching. Also, it'd be hard to convince drivers to switch to another app when they've been using Didi for so long. More active users and higher compensation versus other platforms will also keep them with Didi.. On other less well-known apps, they may need to worry about how to make a profit with fewer riders available.

Do you really want to hit that remove button?

Didi Wants to Turn Things AroundThink Meituan and Gaode are the only ones offering discounts? Think again! When Didi was briefly deplatformed, the company has started to subsidize ride prices with Hongbaos, promotions and all kinds of benefits. They've even gone so far as to simply lower the cost of rides to keep riders from going to other apps. Also, rewards and extra bonuses of up to RMB 180 are on offer for drivers who can make a 10-hour-long drive daily. Thanks to these moves, the company has still managed to keep the cost of losing potential customers to a minimum.

Images: Entrepreneur Magazine, Irene Li, Baijiahao

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