INDEPENDENT TO INTEGRATED.

PASSIVE TO PERSONAL.
WELCOME TO THE FAST LANE.

DIDI
CHUXING
CONNECT. INTEGRATE.

TEAM

-PECTED

QUESTION
How can DIDI customise their product
offering to gain 38million new users,
150,000 new drivers and increase
market share to 60% of Chinese taxi
industry by 2020?

CURRENT
VALUE

PROPOSED
VALUE

Connect riders to drivers

A personal connection between

rider and driver

Go from A to B using cars

Go from A to B using cars, trains

and bikes

Overview

Current v Proposed
PEOPLE

PRODUCT
Users

Businesspeople
Ordinary
commuters
Tourists

Drivers

Taxi Hail

Taxi drivers
Ridesharers

Private
Car

Ridesharing

Long rides

REVENUES

PLACE
5

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Overview

Current v Proposed
PEOPLE

PRODUCT
Users

Businesspeople
Ordinary
commuters
Tourists

Drivers

Taxi Hail

Taxi drivers
Ridesharers

Private
Car

Ridesharing

Location, needs and dialect

Long rides

REVENUES

PLACE
6

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Overview

Current v Proposed
PEOPLE

PRODUCT
Users

Businesspeople
Ordinary
commuters
Tourists

Drivers

Taxi Hail

Taxi drivers
Ridesharers

Private
Car

Ridesharing

Location, needs and dialect

Shorter, more frequent

REVENUES

PLACE
7

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Overview

Current v Proposed
PEOPLE

PRODUCT
Users

Businesspeople
Ordinary
commuters
Tourists

Drivers

Taxi Hail

Taxi drivers
Ridesharers

Private
Car

Ridesharing

Location, needs and dialect

Shorter, more frequent

REVENUES

PLACE
8

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Overview

Our Plan

GOAL

To be the leading
car transport
service in China in
revenue, rides and
customer
experience

KEY ISSUES

No
Competitive
Advantage

Multi-Stage
Journeys

STRATEGY

CONNECT

IMPACT

38million new
users, 1
50,000 new
drivers

JOURNEY
PLANNER

increase market
share to 60% of
Chinese taxi
industry

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

NO COMPETITIVE
ADVANTAGE

MULTI-STAGE
JOURNEYS

Key Issue 1

Key Issue 2

NO COMPETITIVE
ADVANTAGE

MULTI-STAGE
JOURNEYS

Key Issue 1

Key issue 2

Key Issue 1

No competitive advantage
Didi

Product

Kuaidi

Both ride hailing apps

3 service lines Taxi, Private car, Ride share

12

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Key Issue 1

No competitive advantage
Didi

Kuaidi

Product

Both ride hailing apps

3 service lines Taxi, Private car, Ride share

Price

Similar price and price structure

13

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Key Issue 1

No competitive advantage
Didi

Kuaidi

Product

Both ride hailing apps

3 service lines Taxi, Private car, Ride share

Price

Similar price and price structure

Location

Tier 1 Chinese cities

Highly populated Chinese cities
14

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Key Issue 1

No competitive advantage
Didi

Product

Kuaidi

Both ride hailing apps

3 service lines Taxi, Private car, Ride share

No loyalty from drivers

KEYor
TAKEAWAY
users = harder to retain them
Price

Similar price and price structure

Location

Tier 1 Chinese cities

Highly populated Chinese cities
15

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

NO
COMPETITIVE
ADVANTAGE

MULTISTAGE
JOURNEYS

No customer loyalty

Embrace the ecosystem

Key Issue 2

Travel behaviour
CITY DWELLERS

OUTSKIRTS

17

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Key Issue 2

Customers by location
CITY DWELLERS

OUTSKIRTS

TAXIS ARE A COMPONENT OF A WIDER TRANSPORT ECOSYSTEM

18

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

FASTLANE
CONNECT

JOURNEY
PLANNER

Strategy 1

Strategy 2

CONNECT

JOURNEY
PLANNER

Strategy 1

Strategy 2

The Chinese DIDI users

Business
People

Didi
Users
Socialisers

Tourist

21

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

The Chinese DIDI users

Business People
Guangxi
networking

Care about
face

Socialisers
Usage late
nights

Use taxis inbetween

meeting
locations

Care about
safety

Young
adults

Prefer connecting in personal dialect

22

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

The Chinese DIDI users

Business People
Guangxi
networking

Care about
face

Young Professionals
Usage late
nights

Care about
safety

Use these insights to build a more tailored experience

No loyalty
from drivers or users = harder to retain them
Use taxis
Use taxis in
to inbuild a competitive advantage
between
meeting
locations

bad
weather

Prefer connecting in personal dialect

23

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 1

CONNECT
Connect

Prime
Membership

Objective

Dialect
connect

Safety
feature

Creating a more personalized service as your competitive

advantage
24

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 1

CONNECT
Connect

Prime
Membership

Objective

Dialect
connect

Safety
feature

Creating a more personalized service as your competitive

advantage
25

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 1

Prime Membership
Prime
Membership
Making Guangxi
easier

When you book

a restaurant you
can book the
transport

Flash car

Objective

Make Business peoples journeys more convenient and

valuable and increasing loyalty
26

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 1

CONNECT
Connect

Prime
Membership

Objective

Dialect
connect

Safety
feature

Creating a more personalized service as your competitive

advantage
27

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 1

Dialect CONNECT
WeChat
Data and
algorithms

Match
drivers and
users of
same
dialect

Objective

More
personable
and
memorable
journeys

Create personable Didi journeys between users and drivers

28

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 1

CONNECT
Connect

Prime
Membership

Objective

Dialect
connect

Safety
feature

Creating a more personalized service as your competitive

advantage
29

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 1

Safety feature

Safety
feature
Socialisers reporting
locations

Automatic location
update and
estimated time of
arrival sent to friends
through WeChat

Objective

Make Didi a safer option to travel for young professionals

30

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

CONNECT
Strategy 1

JOURNEY
PLANNER
Strategy 2

Strategy 2

Rider-facing

Integrated
with public
transport

Most
efficient
journey

Last-leg
32

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 2

Fill the gaps in transport infrastructure

CITY DWELLERS

OUTSKIRTS

33

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 2

More rides, smaller duration

Quantity of rides purchased

Elasticity of ride purchasing

120

Increase in ride
frequency offsets
decreased journey
length

100
80
60

40
20

More revenue

High price

Low price
34

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 2

Driver-Facing integration with public transport

Surge of riders at
Guangzhou station
Weather: showers

Increases driver
loyalty

Optimizes
efficiency

Guides drivers
to work with
public transport

Data from
Councils
35

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Strategy 2

Other components

Bike Racks on Taxis

Many T1 city-dwellers use bikes
Biking in the inner city is
dangerous
Replace inner-city biking with a
Didi ride

Didi coins from public transport

Public transport users given coins
Encourage them to use Didi for
their last leg

36

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Under Fastlane Didi will gain 38m new users, 150,000 new drivers, and increase
market share of the $22.7b Chinese taxi industry to 60% by 2020.

Users

Drivers
138m

100m

Market Share of taxi market

1.9m

1.75m

60%

2016

2020

2016

2020

37

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

CONNECT Prime Membership

Member
decides on
restaurant
Drops each user
to designated
location

Private Car
Experience

Helping
Business
people build
Guanxi

Scans unique
QR code on
website

Fills in
information on
the app

38

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATIONS
IMPLEMENTATION

CONNECT Safety Feature

Partner with
company GPS
and POI
technology

Enhancing
safety of
intoxicated
passengers
and tourists

Integrate into
existing app

User can choose

to switch on
location identifier
and share with
contacts

39

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATIONS
IMPLEMENTATION

CONNECT Dialect Connect

Profile
setting hometown

Voice
recognition

WeChat

Enhance user and

driver experience

40

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATIONS
IMPLEMENTATION

By 2020 there will be 5m DIDI Prime Members. Each user will pay a $100 or 660
RMB monthly subscription fee. Monthly profits will increase to $75m by 2020.
Incremental Revenue: Profit and Costs
DIDI Prime Members
Monthly
profit of
$75m USD

5m

2.5m
0.5m
85% drivers
fee
2016

2018

2020

2016

2018

2020

41

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Adding safety features and Dialect Connect functions the size of our Socializer
and Tourist user groups by by 9% each year. This will increase profit by $380m
by 2020.

Socializer and Tourist users

Incremental annual profit

$61m

$1.1b

$720m

$40m

2016

2020

2016

$3 profit/ride
40% of our
customers or
40m.
6 rides/year

2020

42

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

JOURNEY PLANNER Data into Insight

Partnering
with local
authority

4 biggest cities
(Shanghai, Beijing,
Tianjin, Guangzhou)

Collecting
data

Volume of passengers
Routes
Peak times
Weather conditions

Mining data

Insight in order to
strategically position
drivers

43

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATIONS
IMPLEMENTATION

Partnership

Costs

Benefits

44

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATIONS
IMPLEMENTATION

JOURNEY PLANNER Customer Interface

Subway

Taxi

Bike

Home

Friends
house
20 km

45

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATIONS
IMPLEMENTATION

Data sharing will give DIDI access to information about 48 billion commutes annually.
This information will increase operational efficiency, increasing number of users and
number of drivers by 10%.

Number of drivers

140

110m

120

Millions

Millions

Number of users
2.5

1.9m
2

100m
100

1.75m

1.5

80
60

40
0.5
20
0

0
2016

2020

2016

2020

46

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION

Under Fastlane Didi will gain 38m new users, 150,000 new drivers, and increase
market share of the $22.7b Chinese taxi industry to 60% by 2020.

Users

Drivers
138m

100m

Market Share of taxi market

1.9m

1.75m

60%

2016

2020

2016

2020

47

SITUATION OVERVIEW

KEY ISSUES + STRATEGY

FINANCE

IMPLEMENTATION