Didi Chuxing (DiDi), the world’s leading mobility and convenience platform, is launching Huaxiaozhu, a new economy ride-hailing service targeting new market segments, including younger users.
Incubated internally by an independent unit, Huaxiaozhu leverages DiDi’s existing driver pool and operates by the same set of safety and compliance standards. The service has been in pilot operation in select cities of Guizhou and Shandong.
The new service is not embedded in DiDi’s platform. Huaxiaozhu has a separate app, with an icon that looks like a money pot. Rides on Huaxiaozhu start from CNY5.5 (USD0.79)
The move comes as the company takes on multiple growth initiatives during China’s post-COVID 19 recovery. These include DiDi Delivery service, now operating in 21 cities, an on-demand logistics service that is landing in 30 cities, and a rebranding of its popular Express Pool service.
China’s gross domestic product (GDP) grew by 3.2% in the second quarter of 2020, the first major economy to rebound from the Covid-19 pandemic. China’s economy shrank by 6.8% in the first quarter of 2020 after the coronavirus shut down large swathes of the country. DiDi is a main contributor in China’s national recovery programs to drive consumer spending and create more jobs, including the recent initiative from the State Development and Reform Commission for developing sharing economy platforms and the State Council’s Digital Platforms project for employment.