DiDi is developing its own BEV with BYD
- In November 2020, DiDi Chuxing, the largest ride-hailing platform in China (equivalent to Uber in North America and Europe), which is said to have around 400 million monthly active users, unveiled the "D1", a BEV developed jointly with the Chinese carmaker BYD. BYD is in charge of the development and production of the model, but it is the first model developed on the initiative of a private tech service company.
- The business model linked to D1 is different from what currently exists. The D1 is purchased by an operating company affiliated to DiDi, and the DiDi driver rents the D1 to the operating company for its use. User fees are calculated based on mileage.
- DiDi's objective with this new partnership is to provide drivers and users with vehicles specially designed for car sharing services: seat with a specific design, steering wheel with a button dedicated to user orders and police emergency calls, sliding door on the right side, infotainment screens, etc ...
- On the other hand, BYD is seeking to secure new sales channels through this partnership. However, if such a business model is successful, carmakers might only become subcontractors. In 2019, BYD's New Energy Vehicles (NEVs) sales reached approximately 230,000 units (including 219,000 passenger vehicles). DiDi's objective is to exceed 1 million vehicles available by 2025, which equals to four years of BYD sales (based on 2019 volumes). Such a volume is very attractive for an carmaker, so if this partnership is successful, it could be a turning point.
- In China, several carmakers have developed their own ride-hailing platforms such as Xiangdao Chuxing (SAIC), Ruqi Chuxing (GAC), Huaxia Chuxing (BAIC) and Caocao Chuxing (Geely). However, compared to specialists as DiDi, these platforms have fewer users. Specialized ride-hailing platforms could therefore have a significant impact on the automotive industry in the future, if the “D1” model is successful.
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