In an exclusive conversation with AméricaEconomía , Vicente Roqueñi López, Director of Government Affairs and Public Policies for Latin America at DiDi, reveals the Chinese company's expansion strategy in the region and its impact on the Chilean market.
Chinese ride-hailing giant DiDi has rapidly grown its global presence since its founding in Beijing in 2012. With operations in 15 countries – 10 of them in Latin America – the company has demonstrated a clear focus on the subcontinent.
"Latin America is the most important market for DiDi. It is the region where it invests the most, only after China, its country of origin and where the platform is the absolute leader in the collaborative economy. We close 2023 with an investment of US$ 410 million," says Roqueñi.
“DiDi Latam not only reflects the success of our global strategy, but also our ability to adapt to local needs, making us a trusted and preferred partner in the markets where we operate,” says the executive.
In addition to the figures, the executive highlights that they are not limited to passenger mobility, because they include three main lines of business in their service portfolio: mobility, food and fintech .
Within them, self-explanatory verticals have been created, such as DiDi Express, DiDi Taxi, DiDi Set Your Price, DiDi Delivery, DiDi Moto, DiDi Food, DiDi Shop, DiDi Loans, DiDi Pay and DiDi Card, all with greater or lesser degree of acceptance in the Latin American region.
In this regard, Roqueñi emphasizes that such diversification not only positions them as a mobility intermediation platform, “but as an integral ecosystem that covers multiple aspects of the daily lives of our users.”
“Our fintech initiatives, DiDi Loans, DiDi Pay and DiDi Card, are designed to promote financial inclusion and offer innovative solutions that adapt to the needs of our users in each market,” adds Roqueñi.
This expansion from app to superapp suggests that DiDi is seeking to become a comprehensive ecosystem of digital services, beyond its initial transportation offering, such as Rappi, Cabify or Uber, other platforms that also started out with mobility and delivery.
FIVE YEARS IN CHILE
Focusing on the Chilean market, Roqueñi details the movements of the five years of presence in the South American country, where they began operations in August 2019.
"Over the years, we have left a significant mark on the economy of thousands of Chilean families, allowing them to generate additional earnings or save through the promotions we offer on our platform. During this period, our presence in the country generated an economic impact of US$ 605 million," he said.
His spearhead that year was the city of Valparaíso, and not the Chilean capital, with a view to gaining enough local experience before launching into the more challenging city.
In the mobility sector, DiDi has introduced innovations in the Chilean market, such as DiDi Mujer. "It is an innovative function that allows drivers registered on the platform to receive travel requests exclusively from female passengers, at any time or in any area," explains Roqueñi.
The platform is now present throughout the country. This national presence is significant, but it also poses challenges in terms of regulation and competition with local transport services.
At DiDi, we are committed to the Chilean market and to the people who connect to the application to generate additional earnings. For example, in 2023 alone, we invested more than US$11 million in initiatives that improved the experience of users who use our platform.
During 2023, the number of drivers registered with DiDi increased by 26%, and in the first months of 2024, there has already been a 6% increase. These figures show that more and more people are finding the platform to be a very valuable alternative for generating profits. Over the years, we have seen that these investments directly translate into more profits and a better experience for thousands of drivers.
In 2023, four years after arriving in the country, the number of trips made weekly with the platform continued to increase by up to 16% compared to the previous year; and, in the first half of this year, the number of monthly trips increased by 13% compared to 2023. This good reception by citizens confirms that we are truly being a solution for many in their daily lives.
But not all of DiDi's initiatives have worked well on Chilean soil.
The DiDi Food vertical stopped operating in Chile in August 2023, after only one year of operations, to focus on mobility, indicating that the company is adjusting its portfolio according to the conditions of each market.
“Although DiDi Food is no longer available in Chile, we remain committed to expanding and improving our mobility services to adapt to the changing needs of our users. Chile remains a key market for DiDi, and our platform is designed to offer solutions that make daily life easier for both individuals and businesses,” says the executive.
At the same time, its presence on Chilean soil offers the added challenge of adapting to the so-called EAT law on Transport Application Companies, which imposes a series of requirements regarding drivers and vehicle cylinder capacity.
"It is normal that within the regulatory process there are spaces to evaluate and improve the regulatory proposal. Since the beginning of this process we have been available to help the authority understand the particularities of the ecosystem of transport application companies," says the executive.
The legislation, which is still being drafted by the government, has been controversial because many of the platforms – including DiDi – have questioned issues such as the privacy of passenger and driver data.
“There are still a number of technical and administrative challenges that we can overcome together, so as not to impact the possibilities of access to the digital economy and continue to provide quality transportation, especially to localities that depend on applications. This is a process in which we are betting that the digital economy not only facilitates mobility, but also promotes sustainable development and social inclusion.”
In February of this year, DiDi was the third mobility platform, along with Uber and Cabify, to ask the Chilean regulatory body to review the powers of the regulation. Six months after that presentation, Roqueñi is now more conciliatory.
“It is a new opportunity to advance regulation that protects the rights of app users to move freely, to generate profits and to do so with due protection of their privacy and security,” he emphasizes.
INSERTS IN ELECTROMOBILITY
In terms of mobility, DiDi claims to have led the transition towards electromobility, promoting initiatives in key markets such as China, Mexico and Brazil.
“These efforts are part of our global vision to promote sustainable mobility and reduce carbon emissions,” says Vicente Roqueñi.
"We have invested in the region in the development of electric cars to continue promoting sustainable mobility and zero-carbon transportation. By the end of 2023, we had four million renewable energy cars registered on our platform globally, of which 3.5 million are purely electric cars," says DiDi's Director of Government Affairs and Public Policy for Latin America.
The use of these vehicles would have helped reduce carbon dioxide emissions by around 5.35 million tonnes, the firm claims.
Although there are already several electric cars registered on the platform in Chile, the market is still in a growth phase.
“However, we are convinced of the great potential that exists in this field. For this reason, we believe that it is crucial to encourage dialogue between the public and private sectors, to boost the development of the industry and prioritize the innovation and collaboration necessary for its expansion,” adds Requeño.
DiDi has a long-term vision for Chile and Latin America, where they have identified enormous potential for growth and innovation.
"Our commitment to the country and the region is solid, and we are determined to continue expanding our operations, as long as regulations allow it," concludes the executive.
