• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 9 hours Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 1 hour Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 36 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 12 hours Apology Accepted!
  • 4 hours Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 14 hours U.S. natural gas at major disadvantage in Europe and China.
  • 15 hours Biden came out of his basement today (Thursday) and said , "we have 120 Million deaths from Covid 19.
  • 3 hours Why Oil could hit $100
  • 3 hours The Political Genius of Donald Trump
  • 16 hours Putin Paid Militants to Kill US Troops
  • 21 hours CoVid in Spain, 9 months before China
  • 20 hours Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
  • 20 hours The world is headed for big problems - interview with very smart economist

Breaking News:

OPEC Production Falls To Three Decade Low

Jon LeSage

Jon LeSage

Jon LeSage is a California-based journalist covering clean vehicles, alternative energy, and economic and regulatory trends shaping the automotive, transportation, and mobility sectors.

More Info

Premium Content

Is This The Next Global Leader In Ride Hailing Services?

Chinese ride-hailing giant Didi Chuxing took another step forward in its strategy of being a global leader in mobility services.

Booking Holdings, which runs popular online travel services like Priceline.com, just invested $500 million in Didi. While Didi is best known for rivaling Uber and Lyft, the Booking investment is part of something much larger.

The half-billion dollar deal follows a $4 billion funding round Didi took in late 2017 as the company prepares to roll its business model to other global markets — including Mexico, Australia, Taiwan, Brazil, and Japan.

Booking Holdings opens the door for Didi to expand its transport services to the travel industry, which used to be owned by traditional transportation modes such as car rental. Didi will be able to offer its ride-sharing and other mobility services to business and leisure travelers through Booking.com apps. Its customers will be able to book hotels through Booking.com, its sister site Agoda, and tap into its popular travel subsidiaries — Kayak, Priceline.com, Rentalcars.com, and OpenTable.

According to the Certify Q1 2018 SpendSmart report, which analyzed over 10 million business receipts and expenses, ride-hailing use from companies such as Uber and Lyft has increased 63% over the past four years — and 12% in the year ending March 30 of this year.

Car rental usage has decreased 32% and taxi rides have decreased 31% over the past four years, according to the study.

Adding travel services to its portfolio comes at a time when the Chinese mobility firm has expanded its global reach. That includes acquiring Brazilian ride-hailing company 99 in Brazil, along with recent plants to enter the Japan market.

Founded in 2012, the Chinese ride-hailing firm started out as Didi Kuaidi. Headed by Chinese business executive Cheng Wei, the company has evolved into Didi Chuxing, which now provides transportation services to more than 450 million customers in over 400 cities in China. Related: Why Is Venezuela Still Sending Subsidized Oil To Cuba?

During 2016, Didi acquired Uber’s China business for $35 billion. The two arch rivals had been fiercely battling for market share through a price war cutting deeply into profits. Uber has had to stay out of the burgeoning China market since that time.

Earlier that year, Didi had received a $1 billion investment from Apple. The Silicon Valley tech giant, like Google and Amazon, have been investing heavily in autonomous vehicles and other mobility services of the future.

Like Apple, Didi sees the future of autonomous tied to electrified transportation. Along with being known for its testing of self-driving vehicles and artificial intelligence, Didi has been taking electric vehicles seriously through its alliance with a European automaker.

In October 2017, Swedish automaker NEVS AB forged an alliance with Didi Chuxing,

NEVS (National Electric Vehicle Sweden) is producing electric cars adapted from automaker Saab’s assets — including the Saab 9-3. NEVS is backed by Chinese investors.

NEVA and Didi plan to develop an electric vehicle fully optimized to DiDi’s mobility service. That includes going the route of self-driving and on-demand mobility services of the future. It will probably tap into the InMotion concept that NEVS unveiled in June 2017. The first vehicle used in the new cooperative venture will be the NEVS 9-3. Related: Who Actually Benefits From Sanctions On Iran?

Didi investments are also being made in other transportation modes like biking, designed to lessen dependence on cars and bring a greater share to mobility services of the future.

For Didi, autonomous vehicles will play a big part in that future. In May, the company was granted approval by the California Department of Motor Vehicles to test its self-driving vehicles in the state. The company had been testing self-driving vehicles in a closed internal environment and had been finalizing plans to test autonomous vehicles out on U.S. roads.

In 2017, Didi opened its main research facility in Mountain View, Calif., to focus on developing artificial intelligence, including autonomous driving. Didi is positioning itself as both a Chinese tech giant and as a major player in Silicon Valley.

A study released in December by global research firm IHS Markit states that mobility services popularized by Didi, Uber, and Lyft will create a trillion dollar industry by 2040. Smartphone-app based mobility services are booming in usage in countries like China and India where workers seek affordable, convenient commuting alternatives in increasingly crowded cities.

The future is just around the corner, according to Dr. Daniel Yergin, who headed up the study in his role as IHS Markit vice chairman.

“The growth of mobility services will lead to more miles traveled by cars and increased access to mobility via the car around the world. People will have greater access and other options than ever before,” Yergin said.

By Jon LeSage for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News