China’s leading digital map provider teamed up with several automakers to provide software support to their ride-hailing platforms, a move aimed at challenging Didi Chuxing’s near-monopoly over the industry.
Alibaba-backed Auto-Navi Software Co., also known as Gaode Map, released a ride-hailing digitalization plans connected to dozens of ride-hailing providers including SAIC Motor Corp.’s Xiangdao Chuxing and T3 Chuxing, launched by state-backed automakers FAW Group, Dongfeng Motor and Chang’an Automobile Co.
Gaode Chairman Yu Yongfu said the company provides only software service and data access but won’t get involved in offline operations. Yu said Gaode Map has more than 200 million daily active users.
Didi’s dominance in the ride-hailing market will change and future competition will focus on capacity in compliance with regulations, in which automakers have unique advantages, an executive at T3 Chuxing told Caixin.
Didi, which has more than 85% of China’s car-hailing market, is facing compliance challenges after two passengers were raped and murdered last year. Shanghai traffic law enforcement authorities last month conducted 21 inspections on 14 platforms and fined Didi 5.5 million yuan ($768,000) for unqualified vehicles and incomplete data.
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