DiDi Chuxing, the Chinese ride-hailing company that kicked out Uber Technologies Inc from China is carrying out a major overhaul.
The Chinese tech giant said it will cut off about 300,000 drivers from its platform over safety concerns.
In the last one year, DiDi had announced that it will prioritise safety over stellar fast growth after it received several complaint from customers.
There are several layers to DiDi’s decision. First is to bolster its customer support infrastructure while the order is to ensure it doesn’t suffer bad PR created by recalcitrant drivers.
On the support side of things, the Chinese ride-hailing company said it now has over 9,000 support staff who can provide real-time support to both drivers and customers.
The company said it will look at spending more than $20 million to expand its customer support in general.
However, this is a short tem solution. However, DiDi was reported to have started talks with SoftBank, its largest shareholder on the possibility of investing in an autonomous driving unit that will create a robotaxis service.
Just like Uber, DiDi has not turned profit and it could risk having more losses should it burn more cash to solve problems.
DiDi is valued at $80 billion while NYSE-listed Uber was valued at $100 billion as at second quarter of this year.