Meituan just launched their car-haling services in Shanghai on Mar 21 after the first try in Nanjing, JIANGSU. The 12 months trial operation in Nanjing gave them a good start dig into this market. Instead of aiming to overtake DiDi Chuxing, Meituan’s goal is to take up market share, as this can ensure that Meituan can maintain high valuation.
The ride-hailing industry in China is already worth $30 billion, more than the rest of the world combined, according to a new report from consulting firm Bain & Company. And it could more than double in size by 2020.
"Any large Chinese city is equal to a small country" when it comes to ride hailing, said Bain partner Raymond Tsang, one of the authors of the report.
The United States is the world's second largest market, at $12 billion.
In China, Didi Chuxing is the dominant player, accounting for 90% of trips, according to the report.
Didi is known globally for driving Uber out of China in 2016. The US company sold its China operations to the Beijing startup after a fierce, multibillion-dollar battle for customers. Uber ended up with an 18% stake in Didi.
While Didi dominates the Chinese market at the moment, it is still vulnerable to competition.
Rival startup Meituan Dianping is also going after Didi. Meituan enables users to use a single app to order a huge range of services, including food delivery, movie tickets and flights. The company started offering ride-hailing services to its 320 million active users earlier this year, a move Didi saw as a direct challenge.
http://money.cnn.com/2018/05/15/technology/china-ride-hailing-market/index.html
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