Week 6 Group Discussion - Didi Taxi (•̀ω•́)✧

Didi taxi from 晔 高

1. SWOT ANALYSIS

Strength: Cheaper price; Convenience; Better service; Rating system

Weakness: High cost in earlier stage; Security and privacy issues

Opportunity: The popularity of smart phone; E-payment; GPS; High demand

Threat: Censorship and regulation; Industry competition

2. PORTER’S FIVE FORCES

Threat of New Entry:

Didi has cost advantage because almost all its offline cost is undertaken by personal drivers. Meanwhile, it greatly satisfies customers’ needs for taking a taxi. However, although the legal status of taxi software has been established, the tailored taxi service has not been legitimized yet.

Supplier Power:

While the market of car rental companies is highly dispersive, the top 10 companies only share 12% of the whole market. Besides, since the hardware equipment of Didi are mostly supplied by drivers, its online service cannot continue once the network screws up.

Threat of Substitution:

e.g. taxi, illegal taxi, private car, shared bicycle, public transportation.

Competitive Rivalry:

According to the ranking list of car calling software downloads in 2016, Didi holds a dominant position in the market. Ranking first in the downloads list, the active users of Didi is over 7 times of the total number of other car calling apps including 易到，神州，首汽.

Buyer Power:

Because of the bad condition of traffic in big cities, a huge demand on car calling software like Didi has emerged, so that Didi has a seller’s market. While customers have little bargaining ability, they are quite sensitive to the price change of traffic tools.

3. THE BUSINESS MODEL CANVAS

Key Partners

· Third-party payment platform (Zhifubao)

· Map/GPS (Baidu map, Gaode map)

· Social media (Weibo, Wechat)

Key Activities

· Product management & development

· Hiring drivers

· Marketing & Customer acquisition

· Managing driver payouts

· Customer support

Key Resources

· Technical platform

· Pricing Algorithm

· Routing Algorithm

· Skilled drivers

Value Propositions

Customer:

· Less waiting time

· Cashless ride

· Less prices than taxi

· Available ETA and map

Driver:

· Additional income source

· Flexible

· Easy payment procedure

Customer Relationship

· Self-service

· Highly automated, efficient

Channels

· Review, Rating & Feedback system

· Customer support

· Short message

· Social media

· Didi apps

· Other apps (maps, Wechat)

Customer Segment

Users:

· Do not own a car

· Do not want to drive to a party or function

· Like to travel in style and be treated as a VIP

· Want a cost-efficient cab at their doorstep

Driver:

· Own a car and want to earn money

· Love to drive

· Wish to be called partners instead of drivers

Cost Structure

· Technological infrastructure

· Salaries to permanent employees

· Launch events & marketing expenditure

Revenue Stream

· Car rides on per km/mile basis

· Surge pricing

· User recharge

4. BLUE OCEAN STRATEGY

Eliminate:

Cash payment

Raise:

Service

Convenience

Flexibility

Review & Supervise

Reduce:

Price

Fixed working time for driver

Ride refusal

Create:

Prestige

Real-time tracking

Pre-communication with drivers

Group Members:
_(•̀ω•́ 」∠)_

Feng, Yuan (1155081930)
Gao, Ye (1155082077)
Luo, Zhaohui (1155084240)
Shi, Tingrui (1155082223)
Wang, Jin (1155088181)
Xu, Shuai (1155081710)