Analyzing The Decline in Market Share of DIDI Travel: A Comprehensive Assessment and Strategies for Sustainable Growth in The Ride-Sharing Industry

Abstract

With the rapid development of the mobile internet, ride-sharing platforms play a crucial role in the urban transportation sector. This paper analyzes in-depth the reasons behind DIDI Travel’s market share decline, combining Porter’s Five Forces model and SWOT analysis method to reveal the multifaceted factors influencing market share. The paper discusses DIDI Travel’s recent revenue and loss situations and challenges in its core market through case analysis. The analysis covers various aspects, such as the threat of substitutes, supplier bargaining power, buyer bargaining power, competitive rivalry, and the threat of new entrants, all impacting DIDI’s market share. To address these issues, disadvantage-opportunity (WO) and disadvantage-threat (WT) strategies are proposed to tackle safety concerns, profit pressures, and competitive challenges. In conclusion, DIDI Travel needs to increase investment in technological innovation, optimize pricing strategies, expand into new markets, strengthen cooperation with the government, maintain competitive advantage and achieve sustainable development. This research provides valuable reference and insights for practitioners, researchers, and decision-makers in the ride-sharing industry to cope with the ever-changing market environment.