
Not another ride-share app!

It’s a sweltering winter day in sunny Brisbane, and The University of Queensland campus is bustling. Students are running from class to class, darting here and there, but no-one is so preoccupied that they don’t notice the “Free Ice-Cream” sign in front of a bright orange caravan. A closer inspection identifies that I too can obtain a free ice-cream if I just download the DiDi app and register, oh and when I do – I’ll qualify for a free ride! What a brilliant piece of place-based marketing.
DiDi – too late or perfect timing?
DiDi is the most recent entrant into the increasingly crowded ride-sharing app space. Launching in Australia in 2018 with a limited trial in Geelong, then expanding to Melbourne, Newcastle and now Brisbane in July 2019, DiDi can in no way be described as an early entrant in Australia. That title is well and truly held by Uber, but what DiDi has done is judge the market, carefully select its distribution locations, and enter the market with an intriguing offer that sets it apart from the competition – clearly setting itself up as a strong challenger.
DiDi joins a crowded marketplace in Australia, with Uber, Shofer, Bolt (previously Taxify), Shebah, Olah and GoCatch (which facilitates taxi hires as well) just some of the local competitors. Within Queensland alone there is Muve, Ola, GoCatch and Uber vying for the local market. This competition is appealing for the customer as it means the potential for lower prices and discounts in the short term, but it does raise questions about long-term sustainability, given that taxis held a profitable dominance for a very long time.
If a DiDi honks on a crowded street – will anybody hear?
DiDi’s campaign messaging, “Do More, Pay Less”, is designed to appeal to the young night-life and activity loving crowd who are driven by experiences not the cost of things. Through the visual of young people enjoying their night more because they could pay less for transport presents DiDi as an attractive option that removes a barrier to having a good time. This messaging is perfectly targeting the university and young adult segment, and is echoed by activations on university campuses like the one I experienced at UQ, alongside discount offers being provided to students through direct partnerships with Universities and student discount providers like UNiDAYS.
Ride-Sharing in Australia
The choice of Australia is an interesting one and will likely prove to be a testing ground for future expansion to the Uber and Lyft dominated US. More interesting is the choice to bypass Sydney, rolling out in Newcastle in March 2019 and now Brisbane before the country’s most populous city. The choice of Newcastle has been defended due to it being a regional commercial centre with a “vibrant, young university population”. DiDi appear to be very targeted in their distribution and choice of place for the roll-out of their product and marketing efforts, selecting cities with high arts, cultural and sporting participation, large university populations and regional centres. This, matched with very specific targeted marketing to those participants and university students, aligns with the direct-distribution model.

Ride-sharing and ride-hailing services, like DiDi and Uber, operate as online platforms to facilitate the connection between independent contracting drivers and passengers to provide on-demand point-to-point transport. As a service, the initial outlay is in the establishment of the app and infrastructure, while ongoing operational costs are relatively small, making them an attractive option for growth. Through a selective direct-distribution model, where DiDi trades in selected cities and distributes via their own app direct to customers, there is a reduction in barriers to purchase for customers (Iacobucci 2018).
Didi is the delivery mechanism for passengers which provides a better experience as drivers earn more.
Peter Murphy, Executive Director – OMG
It could be argued that DiDi and other ridesharing apps also serve as a distributor for drivers, providing the drivers’ services to the customer, in a similar way that a retailer provides a manufacturer’s product (Iacobucci 2018). The driver has no possible direct distribution model short of picking up a stranger on the side of the road and hoping the passenger might pay for the privilege of being driven and therefore relies upon the rideshare operator granting them power, whether that power be coercive (in the case of Uber) with the driver having to suffer through the status-quo, or referent and reward (in the case of DiDi) with the driver receiving favourable outcomes (Iacobucci 2018).
In both the case of the driver’s distribution model and DiDi’s, the chain operates from a pull strategy, with the customer initiating the purchase, pulling the service from the provider/s. The channel of distribution can impact the perception and value of a brand and there must be an appropriate fit between channel and brand (Farra et al 2019). It would be counter-productive, inauthentic and potentially damaging to their brand for DiDi to utilise a third party app or distributor of their services when the direct-to-consumer on-demand approach is what led to the rise of the ride-sharing industry and its ascent over taxis.
References
B&T Magazine, n.d., ‘Rideshare service DiDi launches ‘Do More, Pay Less’ campaign via OMG! Creative & Mr Smith’, B&T, retrieved 16 September 2019, <https://www.bandt.com.au/media/rideshare-service-platform-didi>
Barratt, T, Veen, A, Goods, C, Josserand, E, and Kaine, S 2018, ‘As yet another ridesharing platform launches in Australia, how does this all end?’, The Conversation, 25 June 2018, retrieved 16 September 2019 <http://theconversation.com/as-yet-another-ridesharing-platform-launches-in-australia-how-does-this-all-end-98389>
DiDi Australia 2018, ‘Studying? We’ve got great news!’, DiDi Blog, November 2018, retrieved 16 September 2019, <https://didiaustralia.blog/2018/11/06/studying-weve-got-great-news/>
Farra, S, Quieroz, M, Prado, P, and de Queiroz, R 2019, ‘The allure of ubiquity: brand equity and brand authenticity influenced by distribution channels’, Brazilian Journal of Management, vol. 12, no. 3, retrieved 17 September 2019 <http://ezproxy.deakin.edu.au/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=138193546&authtype=sso&custid=deakin&site=eds-live&scope=site>
Iacobucci, D 2018, Marketing Management Fifth Edition, Cengage Learning, Boston, USA.
Kaye, B and Jourdan, A 2018, ‘Chinese ride-sharing giant Didi picks Australia for first Western foray’, Reuters, 15 June 2018, retrieved 17 September 2019 <https://www.reuters.com/article/us-didi-australia/chinese-ride-sharing-giant-didi-picks-australia-for-first-western-foray-idUSKBN1JB0BL>
Loh, J 2018, ‘Uber on high alert as Chinese competitor Didi moves to Melbourne’, Marketing Magazine, 15 June 2018, retrieved 16 September 2019, <https://www.marketingmag.com.au/news-c/news-uber-didi-moves-melbourne/>
Loh, J 2018, ‘Battle of the brands – Uber and DiDi to feature at 2018 AFL Grand Final’, Marketing Magazine, 27 September 2018, retrieved 17 September 2019 <https://www.marketingmag.com.au/news-c/news-didi-afl-grand-final/>
Mallis, A 2019, ‘DiDi Express bypasses Sydney, to launch ridesharing service in Newcastle’, Which-50, 4 March 2019, retrieved 17 September 2019 <https://which-50.com/didi-express-bypasses-sydney-to-launch-ridesharing-service-in-newcastle/>
Thomson, J 2018, ‘Ridesharing has grown massively in Australia’, IbisWorld, 14 October 2018, retrieved 16 September 2019, <https://www.ibisworld.com/industry-insider/industry-insights/ridesharing-has-grown-massively-in-australia/>
University of Queensland Union 2019, ‘DiDi’, UQU, retrieved 16 September 2019, <https://www.uqu.com.au/reward/didi>
Wilkinson, Z 2019, ‘Rideshare service Didi launches brand platform “Do More, Pay Less”’, Mumbrella, 3 July 2019, retrieved 16 September 2019 <https://mumbrella.com.au/rideshare-service-didi-launches-brand-platform-do-more-pay-less-586583>