The Race for China’s Ride-hailing Market Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The Race for China’s Ride-hailing Market Case Solution

Didi wants to invest 1 billion dollars on UBER (SETH, 2019), and the Chinese people have increased their interest in traveling, and more people are inclined towards using the cab services, enabling the market to have more potential growth on daily basis.The existence of a customer segment that uses both UBER as well as Didi, has made Didi inclined towards having a business collaboration with UBER, which can help both the companies targeting the niche market more efficiently. (JOHNSTON, 2020). If both the businesses agree on this, then the market structure would become more reliable and stable in the upcoming days, and both the businesses will be able to explore more potential in the market.

Virtual Integration and Vertical Integration

UBER does not have any vertical integration because it does not expand its supply chain. It only deals with its customers. Except for the drivers and passengers UBER doesn’t make direct connections with anyone. And, in the same way; Didi also doesn’t want to increase its supply chain. Both the companies have limited channels in the supply chain and both are satisfied, because both making higher revenue from it. And for Virtual integration; both are using online platforms/ online channels to increase the size of their businesses. Both the companies are incorporating the digital payment method and both are heavily reliant over the internet services.

Uber’s Entry to Chinese Market and Its Challenges

Because of China’s rapidly growing urban population, this is a market Uber can’t miss. In August 2013, he chose Shanghai as a test site before promoting his expansion plan nationwide.

As elsewhere, the first product in Shanghai was the Uber Black, a sophisticated reception service for commercial vehicles, and its car range was limited to luxury brands such as BMW, Mercedes-Benz and Audi. The service is limited to certain areas of Shanghai and only US credit cards are accepted for payments in US dollars. In January 2014, Uber extended to Guangzhou and Shenzhen. In April 2014, Uber announced that it would begin operations in Beijing, its 100th city. Since entering China, Uber’s travel days in China have accounted for nearly one million a day, which is 50% of all Uber’s travel worldwide. China is "only behind the United States in its regional market."

The Uber application can create 100,000 full-time jobs per month. When the payment method changed from credit card to Alipay, Uber proved its willingness to serve ordinary Chinese consumers. In addition to the taxi services market, Uber has already occupied almost 50% of the Chinese taxi services market. In Chengdu and Hangzhou, Uber’s daily trips are 479 times and in New York 422 times. However, lagging behind the Chinese hitchhiking market, there is fierce competition locally.

Recommended to Uber

Uber needs to focus on instant on-demand travel, the application interface is easy to follow, and Didi offers a wide range of services, from transportation services to new features like on-demand bus services and booking capability. test drive with a new car (Shi Jia). Therefore, its interface is more confusing and complicated. Didi offers the option to book a ride immediately or in advance: for example, up to three days in advance or to and from the airport. Uber continues to insist that pre-booking is not effective (if you want to arrive at the airport at 7am, the driver must leave at 6.30am to meet the customer). In contrast, the Uber model should focus on the relationship between demand and (close) stocks, which applies to drivers who drive within 3-5 minutes. According to Uber, this is the heart of the welcome app business.

Recommendation

The development of the internet technology has increased the number of platforms in the society. In every prospect of life; the adoption of technology is increasing day by day. Traditional industries are faced many difficulties regarding cost structure, profit strategies and consumer demand. This is a modern age where all the companies are taking innovative steps for the growth of their businesses. UBER and Didi both are very innovative businesses in this modern age, as both are growing well and the algorithmic models possessed by them, are designed to be highly very attractive to the people, and the hassle-free methods for booking a ride provides satisfaction to their customers. Competition is very high, because no one can stop the new entrants from entering in the industry. So both the businesses should update their business models on a regular basis. It is very important for UBER to divert more attention to its infrastructure and then compare it to the Didi’s structure, after which it would become easier for UBER to compete with its rival companies who are providing the same services in the same industry as UBER does..........................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

The Race for China’s Ride-hailing Market Harvard Case Solution & Analysis