Didi eyes dedicated fleet of ‘purpose-built’ vehicles
Print Edition
DIDI Chuxing, already disrupting the global ride-hailing market and taking on US rival Uber, has its sights set on an even bigger potential prize: designing and getting built its own dedicated fleet of Didi cars.
The firm has put together teams of automotive designers and engineers, and is now looking to work with established carmakers to develop 'purpose-built' vehicles, said people close to the company, a move that could shake up the auto market in China and beyond.
The move underscores how tech firms, from software makers for self-driving vehicles to car-sharing platforms, are disrupting traditional automakers such as Ford Motor and Nissan, amid major shifts toward electric cars and pay-per-use models.
In response, some global automakers are now starting to bill themselves as 'mobility' companies that do more than just build and sell vehicles.
Didi officials say the disruptive change sweeping the industry means there is a clear mutual interest in new players like itself and traditional manufacturers working together to develop and improve ride-hailing and sharing platforms.
"Traditional automakers have different skillsets and understanding of the market, and those are all valuable to us,Ó said Kevin Chen, general manager of Didi's automotive service platform, §in an interview.
ÒItÕs not like only we understand the customer. We are open to every form of cooperation.Ó
Didi is ChinaÕs biggest ride-hailing company, cementing its dominance when it bought out UberÕs operations in the country in 2016, and is preparing to launch car-sharing and other on-demand transport services.
It now uses regular passenger cars, but says as it moves forward it sees a need for more dedicated Òpurpose-builtÓ vehicles. Many would likely be electric vehicles, either all-electric battery cars or plug-in electric hybrids.
Didi yesterday laid out plans at an event in Beijing for an alliance with 31 auto industry partners to develop a new mobility business model in China and beyond for sharing cars.
The alliance aims to develop Òunified standards for the design and manufacturing of new energy vehicles, development of intelligent driving technologies, and planning of charging facilities,Ó Didi said.
It will also help Didi develop its purpose-built cars, with the firm offering its customers and operational skills to automakers wanting to develop their own ride-sharing services in return for design expertise.
Didi already has a small but expanding team of automotive designers, engineers, quality control and battery experts, according to the three sources close to the company.
Those experts are scrambling to develop vehicles for a shared car service the Beijing-based company is testing in Hangzhou, in Zhejiang Province, for an eventual nationwide rollout, they said.
ÒWeÕre designing customized cars because without hardware product, you canÕt be a serious mobility company,Ó one of the people said.
Three people close to the company said GAC Motor and CHJ Automotive have already began collaborating on projects with Didi to design purpose-built electric vehicles.
The move signals that a new battleground could be opening up in the automotive engineering and design centers of some ride-hailing and car-sharing services companies.
As car-hailing becomes more popular for commuting and running errands in congested cities such as Beijing and Shanghai, Didi is betting that vehicles purpose-built for such services could start to replace familiar everyday cars like the Toyota Camry or the Honda Civic.
(Reuters)
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