DiDi is Rapidly Expanding New 5% Commission Model In Australia
Didi operates on a 5% commission in Australia and is now expanding to 20 more locations in August 2020 - including Adelaide and Canberra (Posted Aug 2020, Edited Feb 2021)
All around the world ridesharing companies take over a 20% commission from the fare of each ride making this news particularly striking because it raises numerous questions about when DiDi actually started 5% and what this means for the future of ridesharing globally.
When did DiDi launch 5% commissions?
DIDI takes a 20% in its country of origin, China but DiDi expanded into Australia in early 2019 with a small 5% commission. They are aiming on testing better treatment of Drivers and helping Drivers earn more through the same DiDi application.
Will DiDi launch a 5% commission in China next?
DiDi is currently unable to suddenly drop commissions from 20% to 5% in China due to huge accumulated losses from previous years and the impact of the COVID-19 shutdown.
What is the danger to Uber in the US?
There is no danger to Uber in the US because DiDi acquired Uber China and Uber now owns a percentage of DiDi. It is unlikely that DiDi will completly disrupt Uber by launching its 5% commission in the U.S.
What is the danger to Ola in India?
There is no danger to Ola in India either because Softbank is an investor in both DiDi and Ola and it is unlikely that DiDi will compete head-on with Ola's business model in India.
What is the danger to Careem in the Middle East?
There is no danger to Careem in the Middle East because Uber owns Careem.
So where exactly is DiDi expanding its 5% model?
The Chinese-based company is launching in 20 new destinations on August 10. Its new expansion will see Didi cover more areas including Adelaide, Ballarat, Bendigo, Bunbury, Bundaberg, Busselton, Cairns, Canberra – Queanbeyan, the Central Coast in NSW, Coffs Harbour, Gladstone – Tannum Sands, Mackay, Hervey Bay, Port Macquarie, Rockhampton, Shepparton – Mooroopna, Toowoomba, Townsville, Wagga Wagga and Wollongong.
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