Ride-sharing giant DiDi eyeing South

PHOTO: SUPPLIED
PHOTO: SUPPLIED
Chinese giant DiDi is spicing up the ride-sharing app market in a Christchurch launch next month and Dunedin and Queenstown are among ‘‘next target’’ locations.

Parking taxis to one side, marketplace leader Uber had been the only ride-hailing operator in the southern cities.

DiDi’s entry in Christchurch on May 11 is expected to bring more competition and follows its launch at Auckland in 2020 and Wellington midway last year. As it has done in the past, fares are being cut initially to announce its arrival.

Australia and New Zealand external affairs head Dan Jordan said Christchurch was the obvious next step.

He said passengers wanted lower fares and drivers were craving competition to increase their earnings as there had been only one platform for so long.

DiDi now has a 30% market share in Wellington after a spike during an initial ‘‘big’ investment phase of reduced fares and driver incentive.

The first focus is on the three main centres.

Beyond that, DiDi might extend to Hamilton, Tauranga, Dunedin and Queenstown.

Mr Jordan said the company planned to extend its footprint further, but not immediately.

The cost of living and the surge in fuel prices was placing pressure on drivers and the Christchurch entry would bring both short and long-term benefits to them, he said.

DiDi launched in Australia in 2018 and expanded its operation to capture about a quarter of the Australian ride-share market.

Christchurch will become its 31st city within Australasia.

European company, Bolt, landed in Auckland last year and was mulling over Christchurch and Wellington, but only after building its Auckland base.

tim.cronshaw@odt.co.nz