Didi cancels its journey in South Africa – TechCrunch

Didi Chixung, the Chinese language ride-hailing large, has at present shut down its operations in South Africa (SA), a yr after it launched within the nation, marking its entry into the continent.

A Didi official confirmed the closure to TechCrunch however didn’t reveal the explanations for pulling the plug.

“We have now made the tough choice to finish our operation in South Africa from April 8. Our intention has been to make sure a easy transition for all and wish to take this chance to thank our workers, drivers, riders and companions for the kindness and help proven to DiDi,” a Didi spokesperson mentioned.

Didi’s launch in South Africa final yr had been anticipated to offer new competitors to Uber and Bolt, the dominant ride-hailing firms in that area and throughout Africa. Its take-off, nevertheless, didn’t go as anticipated.

Didi hinted that its departure is anticipated to go away sources for extra promising markets like Egypt, the place it launched within the final quarter of 2021. Studies point out that it’s exploring increasing to Nigeria too.

“We have now re-evaluated the place we are able to take advantage of optimistic affect within the short-term and are specializing in creating even deeper capabilities in different current markets,” the spokesperson advised TechCrunch.

Didi’s exit comes at a time when taxi drivers in South Africa are calling for the regulation of the sector citing exploitation and poor work situations. Choose drivers that lately went on strike additionally cited decreased earnings given the rising gasoline costs and the “excessive commissions” charged by the ride-hailing companies.

As Didi leaves, Uber, which launched in South Africa in 2013, has been on an aggressive growth drive doubling its presence to over 40 cities within the final yr alone. Bolt, which entered SA in 2015, lately expanded its inexperienced choices, shortly after introducing a meals supply choice within the nation final yr.