DiDi, a Chinese ride-hailing company, is preparing to expand its operations in Nigeria

DiDi, a Chinese ride-hailing company, is preparing to expand its operations in Nigeria

There are signs that the Chinese ride-hailing company DiDiChuxing is preparing to launch operations in Nigeria, the continent's largest market, in the near future. According to a job listing we came across, the company, which launched in South Africa in March, is looking to hire a Driver Center Manager in Lagos, Nigeria.

The Driver Center locations, according to the job description, are "in-person support and experience facilities that assist users in getting onboarded, resolving outstanding issues, and becoming more involved with DiDi's brand and experience."

The most important responsibilities of this position include effectively managing a service team spread across multiple cities, overseeing and improving driver and courier centers, and, perhaps most importantly, collaborating with Operations to "support the successful launch."

The position of Driver Centre Manager is a full-time position, and according to research, one can be found in every country where DiDi operates. South African DiDi driver centers are managed by Bertina Tshabalala, who holds the position of Manager. Egypt is represented by Tarek Ghanem, who holds the position.

Furthermore, sources informed me that the e-hailing company is actively recruiting for qualified candidates to fill a variety of senior positions in its proposed Nigerian operations, and that it has already begun speaking with prospective first-time employees in its new catchment area.

According to what we know, the majority of the positions are in the operations field. This could imply that the company intends to provide its users with a positive customer experience in the future. This could prove to be a strong selling point for DiDi. The provision of high-quality customer service will be critical in attracting the millions of Nigerians who currently use other service providers in the face of daily complaints about poor customer service.

Anastasia Ioannidi, a consultant based in the United Kingdom, is in charge of the recruitment process, we've learned. Her educational background includes a Master's degree in Political Economy of Europe from the London School of Economics, as well as more than three years of experience working as an international recruiter.

What is Didi's motivation for coming to Nigeria?

The expansion of DiDi's operations into Nigeria was not among the company's goals for 2021. When it launched its expansion into South Africa in March, its goal was to establish an African footprint before expanding into Germany, France, and the United Kingdom to establish a foothold in Europe and take over the continent. So, what might have changed in this case?

According to reports, the Asian ride-hailing behemoth was not initially enthusiastic about its foray into the African ride-hailing industry.

In the opinion of Zheng Yu, a professor at China's Fudan University's School of International Relations and Public Affairs, DiDi may have chosen South Africa as its first international market because of the country's relatively stable market environment and high economic potential, among other factors.

According to the professor, who spoke to the Chinese magazine Sixth Tone, "despite the fact that Africa's consumption power and overall economic development are low, public demand for travel has continued to rise over the past two decades, providing DiDi with a significant amount of room to grow."

The CEO of DiDi, on the other hand, stated that the company will "undoubtedly" face challenges as it adapts to African markets. “DiDi must adapt to the consumption habits of the local population and make improvements,” he stated. Otherwise, it may follow in the footsteps of Uber, which was unsuccessful in the Chinese market.”

However, the app-based taxi-hailing company appears to be doing quite well in the African market so far, according to the company. After six months in South Africa, the company has already established a foothold in five cities: Johannesburg, Ekurhuleni, Pretoria, Cape Town and Port Elizabeth. Johannesburg is the company's headquarters (Gqeberha).

The situation is similar in Egypt, despite the fact that DiDi considers Egypt to be a Middle Eastern market. In other words, based on its experience in Africa thus far, it appears that business may be better than it had anticipated.

Carina Smith-Allin, DiDi's Head of Public Relations and Communications for Sub-Saharan Africa, recently stated the following:

The approach we take as a new company is to launch where there is significant customer demand. This is due to the fact that it is sound business practice, as well as being beneficial to drivers and riders. As a result, you will see us in high-demand areas in the near future.”

And what other "area" can be in such high demand as the largest economy and most populous country in Africa?

IPO gone bad?

Another possible explanation could be the recent crackdowns on Didi that have taken place in its home market of China at the hands of the authorities. The company has been subjected to a slew of restrictions since it went public on the New York Stock Exchange, as has been done to other Chinese companies that have dared to go public on foreign stock exchanges, such as Full Truck Alliance, AliBaba, and Kanzhun.

China's most recent crackdown on the company was an order to remove its apps from appstores in the country, which was issued last week. This follows the imposition of sanctions for the use of vehicles with unregistered license plates and the opening of investigations into the illegal collection of personal data from its users.

As a result of this series of crackdowns, the company's stock has plummeted, taking them with it. DiDi's stock is currently trading at $8.45 per share, representing nearly 60% of its IPO price of $14. It is not difficult to see that the company requires another large market in which to establish itself.

Possible model of DiDi for Nigeria

As can be seen from the job advertisements, DiDi intends to operate under a business model that prioritizes its customers/riders. In general, the goal is to provide them with a positive experience on each ride.

This is reportedly the reason why the company is beefing up its operations department, which will be implemented immediately.

It is reasonable to expect DiDi to favor its low-cost, discount-based business model, despite the fact that it consumes resources and guarantees lower profits. This is due to the fact that the model has significantly contributed to the growth of its user base and the achievement of market dominance in a number of markets.

Just as it did in its home market of South Africa, the ride-hailing startup may wish to introduce different classes of services to cater to different types of people depending on their needs and financial capabilities.

There are three services offered by the startup in South Africa: DiDi Go, which is a low-cost option for customers with limited financial resources; DiDi Express, which is a standard service for those who want to strike a balance between price and comfort; and DiDi XL, which is designed for people who require more space and has a capacity of up to seven seats.