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(Photo illustration by Pavlo Gonchar / SOPA Images / LightRocket via Getty Images)
- The world’s largest email service, China-based DiDi Chuxing, launched in South Africa.
- After completing a pilot program in Gqeberha, DiDi’s South African app went public, but only for passengers in Cape Town.
- Their rates are more expensive than those of Bolt and Uber, which dominate the local market.
- But DiDi could get cheaper as more drivers, lured by “0% commission” fees, sign up on the platform.
- For more stories, visit www.BusinessInsider.co.za.
China’s leading email service is expanding into South Africa, challenging a market dominated by Bolt and Uber. The official launch, which brings DiDi Chuxing to Cape Town, follows a successful pilot program carried out during March in Gqeberha.
Founded in 2012, DiDi Chuxing is the world’s largest email service, with an estimated 550 million users and more than 30 million drivers in 16 countries. The tech company’s latest foray into the South African market comes amid talks to go public after raising $ 21.2 billion (R315 billion) in venture capital, with significant backing from SoftBank Group.
By comparison, Uber has an estimated 93 million active users and 4 million drivers in 80 countries.
On March 1, DiDi launched a limited pilot program in Gqeberha to gauge interest in the South African market. The trial registered more than 2,000 drivers who provided transportation to 20,000 residents, according to Stephen Zhu, DiDi’s director of international business.
The South African version of the app has been officially released and is available for download, but is limited to Cape Town users. The first phase of the expansion focuses on hiring drivers who will not need to split their rates with DiDi, which the e-hailing service indicates as a “0% commission”, for the first month after registering with the app.
However, the number of available drivers is limited during the hiring phase, which increases waiting time and prices, especially during peak traffic hours.
DiDi currently offers “express” transportation to passengers, which is charged at a base rate of R15 and a distance rate of R10 per kilometer. However, these rates are subject to “dynamic pricing” fluctuations that are similar to Uber’s surge prices. During peak hours or when drivers are limited, rates are increased according to a standard rate multiplier.
DiDi’s “express” service is the equivalent of Bolt’s standard ride and UberX, in terms of passenger capacity.
DiDi vs Uber vs Bolt price comparison
DiDi’s initial base rate and distance rates are more expensive than Uber and Bolt, but could become more competitive as drivers sign up for the new app.
DiDi vs Uber vs Bolt price comparison
These rates were calculated between 9:30 AM and 10:30 AM on Tuesday, March 30 and include applicable “dynamic pricing” agreements.
In addition to being more expensive than Uber and Bolt, DiDi’s passenger service is currently limited to the “express” offering, while the other two competitors offer even more affordable options through compact rides.
(Compiled by Luke Daniel)
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