Chinese firm DiDi launched in the city on May 11 with a 50% discount at a $15 cap for the first few months, quickly countered with low fare specials by market leading Uber.
The entry package had ended, but DiDi is introducing weekend deals and targeted promotions as it meets a stronger pushback than expected from its rival.
Ride-hailing passengers and drivers from both companies are ending up the winners from the fare cuts.
Christchurch is DiDi’s third market after an Auckland launch in 2020 and Wellington midway last year, with Hamilton, Tauranga, Dunedin and Queenstown likely to be next on the list.
Australia and New Zealand external affairs head Dan Jordan said DiDi had encountered more ‘‘aggressive’’ competition from Uber in Christchurch than its Wellington launch.
The arrival of another ridesharing platform had resulted in more promotions for riders and more incentives for drivers, he said.
‘‘I would love to be a rideshare user in Christchurch at the moment. Two of the world’s largest ridesharing companies fighting for market share — you can’t go wrong if you are a rideshare user in the town.’’
Market share growth had been steady, but not as quick as in the past as a result of the pushback, he said.
Uber responded to the newcomer by matching DiDi specials and adding its own promotions.
Mr Jordan said the response by the other brand was flattering.
He said Christchurch passengers had gone without significant rider or driver promotions for some time until DiDi’s entry in the market.
This had created major growth in ride share trips in Christchurch, a better deal for riders and more income opportunities for drivers, he said.
‘‘We will not necessarily continue that [entry] promotion, but there are other ways we have been promoting. That was our blanket promotions deal to start with and now that it’s over we will have targeted promotions where we think it will benefit the market the most, significantly increased promotions on the weekends where the majority of trips are and other promotions.’’
A ‘‘free Saturday night’’ promotion is offering a 100% discount up to a $15 cap between 7pm to 3am and incentivised weekday offers include earning a free ride capped at $15 after accumulating five rides.
Mr Jordan said Uber was continuing to offer discounted rides, showing both platforms had a sustained investment in Christchurch.
‘‘We certainly are not going anywhere and will continue to provide offers for the market for as long as it takes and that’s seen across most cities in which we operate in Australia and NZ.’’
DiDi’s entry saw drivers receiving no cut from any trip until the offer closed when an 18% service fee was introduced.
