Color LogoLoading...

🌍 Feed

✍🏿 Compose

DiDi Chixung, Chinese Ride-Hailing Startup Ceases Operations in South Africa

#markets
#markets
#transportation
#delivery
#startup
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.

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.

Top comments(0)

SEND

You may like this too...

Bird Story Agency

Despite a dip in overall funding levels, the continent is witnessing a marked increase in the number of ventures securing $1 million or more.
Apr 10, 2024

Bird Story Agency

Mozambique doubles down on growth with Africa's first dual benchmark rate cuts in 2024 as currencies across the continent score gains against the greenback.
Apr 5, 2024

Bird Story Agency

From ranking as the world’s worst-performing currencies in 2023, the Kenyan shilling and Nigerian naira have made significant progress. They are now among the best-performing currencies in the world for 2024, raising hopes for a lower cost of living in these countries.
Apr 2, 2024

Benjamindada

Explore how Leatherback's collaboration with YES BANK is revolutionizing remittances by enabling seamless Indian Rupee transfers worldwide, fostering economic growth and cultural exchange between India and Africa.
Mar 26, 2024

TechCabal

Access Bank's acquisition of National Bank of Kenya (NBK) marks a significant move in its East Africa expansion strategy, valued at around $100 million, pending regulatory approval. 📈💰
Mar 21, 2024

TechCabal

Nigeria's Access Bank strengthens its presence in Kenya with the acquisition of the National Bank of Kenya from KCB Group, marking its second Kenyan acquisition in recent years. 🌍💼
Mar 20, 2024

TechCabal

Nigeria's Securities and Exchange Commission (SEC) proposes a substantial increase in the minimum paid-up capital for virtual asset service providers (VASPs) to ₦1 billion, aiming to reshape the crypto landscape.
Mar 18, 2024

TechCabal

Chipper Cash, a prominent fintech company, announces layoffs and salary cuts after suspending its services in the US, highlighting a strategic shift towards focusing on its African markets.
Mar 16, 2024

TechCabal

Despite economic challenges fueled by hyperinflation and sanctions, Zimbabwean startups are resilient and forging ahead. Learn how they navigate funding constraints, access markets beyond borders, and embrace alternative financial technologies.
Mar 15, 2024

Bird Story Agency

Nongcebo Langa fell in love with wine after a chance encounter with a winemaker at a fair. She went on to study the craft at South Africa’s renowned Stellenbosch University and her passion and mastery of the industry’s technical processes has resulted in her creating award-winning wines, like the 2022 Delheim Gewürztraminer.
Mar 12, 2024
Home
Business Hub
Market Hub
You
By signing up you agree to ourTerms|About us|Market Hub|Business Hub|Deals Hub