Didi Chuxing, the Chinese ride-hailing app, has expanded into financial services, putting it in direct competition with Alibaba and Tencent.
Didi has added a range of financial services including car insurance, personal loans and a crowdfunded medical insurance product to its ride-hailing app, the company announced on Wednesday. Consumers can also access these products via a separate «Didi Finance» app.
«This initial launch features two groups of services. DiDi protection and credit services provide innovative and reliable personal financial products in an era of new economy and flexible employment. A new health insurance product, for instance, breaks down annual critical illness insurance to lower the entry barrier for gig economy workers and broaden the scope of protection for more families,» said Didi in a media statement.
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Didi Chuxing's move into financial services comes as no surprise as ride-hailing giants around the world aim to capture a slice of the mobile payment pie. In Southeast Asia, ride-hailing giant Grab has aimed to be a preferred mobile wallet in the region, offering payment solutions, credit lines and financial products. In Indonesia, ride-hailing giant Go-Jek has already obtained an e-money license in the country and launched similar services.
Didi’s move to diversify comes after new regulations are threatening to cut the company's fleet size. Following the murder of two passengers on its platform last year, Chinese authorities criticised the company and threatened punishments if the firm did not improve customer safety. In some cities, regulators are limiting the fleet size of ride-hailing companies due to congestion concerns.
