DiDi Chixung, Chinese Ride-Hailing Startup Ceases Operations in South Africa
Didi Chixung, the Chinese ride-hailing behemoth, has announced the closure of its operations in South Africa (SA), a year after it first opened its doors on the continent.
A Didi representative in South Africa confirmed the closure to TechCrunch but did not elaborate on the reasons for the shutdown.
“We have made the tough choice to cease operations in South Africa as of April 8.” “Our goal has been to ensure a smooth transition for all, and we’d like to take this opportunity to express our gratitude to our workers, drivers, riders, and partners for their generosity and support shown to DiDi,” said a Didi South Africa representative.
Didi’s entrance into South Africa last year was expected to increase competition for Uber and Bolt, the region’s and continent’s main ride-hailing providers. Its takeoff, on the other hand, did not go as planned.
Didi hinted its exit will free up resources for more potential markets, including Egypt, where it began in the fourth quarter of 2021. According to reports, it is also looking into expanding into Nigeria. Besides Russia and Mexico, the taxi-hailing service operates in 16 countries.
“We’ve re-evaluated where we can have the greatest immediate impact and are focusing on establishing even deeper skills in other existing areas,” a SA representative told TechCrunch.
Didi’s departure comes at a time when taxi drivers in South Africa are demanding industry regulation, citing exploitation and bad working conditions as reasons. Select drivers who went on strike recently reported lower earnings because of increased fuel prices and “excessive fees” levied by ride-hailing companies.
As Didi departs, Uber, which first arrived in South Africa in 2013, has been aggressively expanding, tripling its presence in less than a year to over 40 cities. Bolt, which first arrived in the country in 2015, has lately provided green choices (EV and hybrid vehicles) after establishing a food delivery business last year.
