What we do?

Information and communication technologies have radically transformed the organization of the world of work, to the point where people speak of an “uberization” of the economy. However, it is not Uber but DiDi that is the leading company in personal mobility globally: in 2021, DiDi recorded more trips in China than Uber worldwide. But DiDi’s ambition extends beyond China. For the past five years, the company has begun investing in other markets in Asia, Africa, and Latin America. This expansion presents crucial challenges in terms of adapting to environments very different from China’s—such as that in Latin America, which is characterized by high levels of informality in the labor market and problems of citizen insecurity.

This paper explores and analyzes the strategies that DiDi used to establish itself in Latin American countries, including Mexico, Brazil, Colombia, and Peru. The context in which DiDi arrived in the region differs significantly from the Chinese context. Before DiDi’s entry in late 2019, the Latin American market was dominated by global giants such as Uber and Cabify. That timing also meant that DiDi’s entry was affected by the coronavirus pandemic and restrictions on people’s mobility, as well as the economic crisis faced by the region. Moreover, although the extent varied between cities, the company faced a challenging environment due to protests by taxi driver associations and unions against ride-hailing platforms.

In this context, DiDi implemented adaptation strategies based on three pillars. First, it established strategic alliances with local governments, private companies, and civil society actors to address security issues and promote social initiatives. Second, it adapted to local needs by offering innovative services (such as DiDi Food for food delivery and the DiDi Flex fare negotiation option) and expanding its services to the financial sector through loans and credit cards in countries like Mexico and Brazil. Finally, the company emphasized passenger safety, with rigorous driver verification processes and options for drivers to avoid dangerous areas, while also offering low commissions to drivers and food delivery workers (that is, claiming only a small portion of fares) to gain a significant market share.

This trajectory demonstrates a remarkable ability to adapt, challenging simplistic narratives about the entry of Chinese companies into the region. It also raises key academic questions about the mechanisms of this adaptation and how much it is linked to the specific characteristics of the transportation industry and the unique trajectory of this private company. The case discussed in this paper also raises questions for public policymakers and for other companies in the sector. These questions relate to improving the working conditions for those contracted by the company, formalizing employment, and protecting user data privacy.