DiDi’s Strategic Expansion and Adaptation in Latin America

Summary:
In 2018, DiDi launched DiDi Food to compete in the food delivery market against platforms like Uber Eats and Rappi. While it succeeded in several Latin American countries, its presence in China remains limited. DiDi’s strategy focused on driving economic opportunities in the gastronomic industry, and it introduced investment programs to support local businesses, initially launching in Mexico and Brazil, later expanding to Chile, Colombia, Peru, and the Dominican Republic.
However, between 2022 and 2023, DiDi withdrew its food delivery service from Brazil, the Dominican Republic, and Chile to focus on its mobility business. Experts linked these exits to pandemic impacts and strategic resource allocation. DiDi emphasizes understanding local markets before introducing services, assembling a diverse team with local and global experience.
DiDi’s adaptability includes collaborations with governments and NGOs to address road safety, public security, and gender equality. For example, partnerships in Argentina and Chile involve private security firms, and initiatives in Mexico support women facing violence. The company also integrates taxi drivers from both formal and informal sectors, offering opportunities to traditional drivers and using aggressive recruitment campaigns.
In Peru, DiDi entered the market during the pandemic by offering competitive rates and safety features, gaining a significant market share despite existing competition. DiDi’s drivers appreciate the platform’s incentives and safety measures, such as the ability to avoid dangerous areas. The company also introduced flexible fare negotiation and developed financial services, including loans and credit cards for drivers.
DiDi’s strategies highlight its ability to adapt to diverse market conditions and local needs, contrasting with the more controlled approach of Chinese state-owned enterprises. The company’s expansion raises questions about the balance between standardization and local adaptation in globalization strategies. DiDi’s presence in Latin America underscores the importance of understanding local contexts and building strategic alliances to succeed in different markets.