Didi Chuxing: Expansion and Risk Management


Didi Chuxing is a leading mobile transportation platform that offers a wide range of app-based transportation options, including taxi, express, premier, luxe, hitch, bus, minibus, designated driving, enterprise solutions, bike sharing, e-bike sharing, vehicle sharing, and food delivery. Didi Chuxing, formerly Didi Kuaidi, which formed in 2015 by the merger of the taxi-hailing companies Didi Dache and Kuaidi Dache, has been the dominant player in the ride-hailing market in China, after taking over the Chinese Uber operations in 2016. Since then, Didi Chuxing has launched ride-hailing services in Brazil, Taiwan, Hong Kong, Mexico, Australia, and Japan as part of its global expansion. The company is exploring the applications of artificial intelligence in the development of autonomous driving and smart cities, with the goal to become the world’s biggest transportation platform, serving more than 2 billion users.

While Didi Chuxing has been experiencing significant growth of its market and service scale, there is a public outcry against its operation of its Hitch service (a car-pooling option which pairs drivers and passengers following the same route) after two female passengers using the service were killed by drivers in May and August 2018, respectively. Much of the anger is directed at the company. Before this turns into a full-blown corporate crisis, what actions should Didi Chuxing undertake to rectify the situation?

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