Cracked Down In China, Ride-hailing Startup DiDi Begins African Exploration With Egypt And South Africa

After being cracked down by Chinese authorities over allegations of breach of data privacy rules, China’s leading ride-hailing platform, Didi, has aggressively started its expansion mission in Africa. 

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“We are bringing a global experience and the best technology to ensure safety for our passengers and drivers. Our innovative features include facial recognition for drivers, SOS buttons for riders and drivers linked to the local police, 24/7 support via a dedicated safety hotline, preview information for riders and drivers, and safety training for drivers, among others,” Carina Smith-Allin, DiDi head of public relations and communications for Sub-Saharan Africa said. 

DiDi
DiDi

Here Is What You Need To Know

  • DiDi was launched in South Africa on August 23 in three Gauteng cities: Johannesburg, Ekurhuleni, and Pretoria. The Gauteng expansion follows the opening of offices in Cape Town and Gqeberha (Port Elizabeth) earlier this year by the Uber and Bolt competitor, which is sponsored by Softbank.
  • DiDi made its Middle East and North Africa debut last Sunday, beginning in Egypt. 
  • Following the recent introduction of Russian-owned e-hailing startup InDriver in Egypt, which competes with Bolt and Uber, the company’s entry into the market is likely to increase competition.
  • DiDi offers three services in South Africa: DiDi Go, a low-cost option for budget-conscious riders; DiDi Express, a standard service for those seeking a mix of price and comfort; and DiDi XL, with a capacity of up to seven seats, for those who require more space.
  • The DiDi Express has an R15 base cost and a R10 per kilometer distance rate. The service will compete with Uber’s standard rate, which begins at R7.50/km, and Bolt’s standard rate, which begins at R6.00/km.
  • The cost of DiDi Go varies depending on the province.
  • DiDi’s user onboarding process involves a thorough verification process that links the user’s app profile to their social media presence.
  • Uber owns a 12.5% interest in Didi, putting it the company’s second-largest shareholder behind SoftBank.
  • Didi is one of China’s largest firms, and the Beijing government is attempting to keep it under control by investing in state-owned enterprises.
  • In Egypt, drivers will receive a financial reward if they make 10 trips during the first week of registration starting from September, 13, 2020, and the driver will receive a reward of £25 for each successful new user invitation, plus a system of tiered rewards that the “Captain” receives when he reaches a certain number of invites (150 pounds coupon).

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer