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DiDi partners with SoftBank in Japan for platform services for taxi industry, launches open new energy car-sharing platform

Didi Chuxing, the world’s leading mobile transportation platform, and SoftBank Corp. have established a partnership to provide platform services for the taxi industry. The partnership will utilize DiDi’s advanced AI technologies to build ride-hailing platforms to enhance efficiency for both taxi operators and drivers. DiDi and SoftBank aim to commence trial services in Osaka, Kyoto, Fukuoka, Tokyo and other locations within this year. DiDi and SoftBank also plan to set up a joint venture in Japan.

Both partners believe DiDi’s deep learning-based demand prediction and smart dispatch systems, combined with SoftBank’s local resources and expertise, will help Japan’s taxi operators further optimize taxi ride-hailing services and increase passenger convenience. DiDi and SoftBank aim to build an open and inclusive platform that will be available to all of Japan’s taxi operators.

Didi
A key element in DiDi’s strategy is building a smart transportation ecosystem to capture future opportunities, with global expansion through alliances with regional partners. Source: DiDi. Click to enlarge.

From its founding as a taxi-hailing business, DiDi has been building up a world-leading one-stop transportation platform since 2012. The company continues to apply its big data capabilities to increase taxi drivers’ work efficiency and income. With 2 million taxi drivers connected to the app, DiDi is now the world’s leading online platform for taxi-hailing. In 2017, taxi drivers completed 1.1 billion rides on DiDi. DiDi is also working closely with taxi companies to help them build intelligent IT and driver management systems. Currently DiDi has established partnerships with about 500 taxi operators in China.

Separately, in Beijing, DiDi launched its car-sharing platform. DiDi is partnering with automakers, new energy transportation infrastructure operators and after-sales service providers to build an open new energy car-sharing system. The network of strategic partners includes 12 top automakers including BAIC BJEV, BYD, Chang’an Automobile Group, Chery Automobile Group, Dongfeng Passenger Vehicle, First Auto Works, Geely Auto, Hawtai Motor, JAC Motors, KIA Motors, Renault-Nissan-Mitsubishi, and Zotye Auto.

According to a study by GM Insights, the global car-sharing market is expected to grow 34% annually from 2017 to 2024, while the annual growth rate in China will exceed 40%. The first generation of large-scale, new energy car-sharing platforms are expected to materialize in core emerging countries such as China.

DiDi hopes to leverage on its AI strengths and national network to empower the entire automotive industry chain. The company’s data analytics capabilities enable smarter network management based on dynamic understanding of user distribution and attributes. Under the partnership, DiDi will open its platform to automakers’ own sharing services. The platform will introduce to individuals and corporate partners not only diversified models from automakers, but also auto-related finance and insurance services.

In addition to automakers, DiDi will also work closely with other car-sharing services, rental companies, infrastructure operators and after-sales service providers. As of August 2017, DiDi—which acquired Uber China in 2016—had built investment and technology partnerships with seven leading rideshare companies of the world, including Lyft, Grab, Ola, Uber, 99, Taxify and Careem.

DiDi believes the new program will reduce cost and enhance efficiency for the entire industry chain by integrating resources from cars, capital, parking spaces, charging points and refueling stations, to auto-maintenance and repair services in a new, open ecosystem of collaboration.

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