Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 49 , 01 December 2023


Open Access | Article

Analysis of Didi Dache and Kuaidi Dache Merger: Operational Strategies, Motivation, and SWOT Analysis

Tingjun Rong * 1
1 School of Economics and Statistics, Guangzhou University, Guangzhou, 510006, China

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 49, 15-19
Published 01 December 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Tingjun Rong. Analysis of Didi Dache and Kuaidi Dache Merger: Operational Strategies, Motivation, and SWOT Analysis. AEMPS (2023) Vol. 49: 15-19. DOI: 10.54254/2754-1169/49/20230471.

Abstract

In recent years, the scale and number of mergers and acquisitions (M&A) between companies have been steadily increasing, with M&A becoming the primary choice for expanding their businesses. However, M&A between internet companies often involves many uncertainties. This paper first analyzes the operational strategies and merger motivations of Didi Chuxing and Kuaidi Dache (now DiDi and Dida respectively), and then applies the SWOT analysis method to analyze the strengths, weaknesses, opportunities, and threats of this merger event. Finally, the paper summarizes the pros and cons of this merger event and provides recommendations. The research findings of this paper indicate that the merger motivations of this merger event mainly include reducing market competition pressure, achieving resource integration while expanding market share, and seeking more development opportunities. The SWOT analysis shows that the strengths lie in resource integration and internationalization, the weaknesses involve strategic risks, the opportunities can be harnessed through synergy effects, and the threats involve potential negative impacts of monopolies on the market. By formulating the correct strategic theories, enhancing core competitiveness, and effectively utilizing synergy effects, the success rate of corporate mergers and acquisitions can be improved, providing feasible ideas for M&A in China's ride-hailing industry.

Keywords

Didi, Kuaidi, strategic merger

References

1. Y Zhang.(2018).The Reform of Traditional Taxi Service and the Development of Online Car-hailing under the Background of Internet Plus. Contemporary Economic Management(04),46-51.

2. B Su & P Du.(2016).Top 10 Internet Company Mergers in 2015. Financial View(Wealth)(01),50-53.

3. S Zhang & S Lu.(2017).Risks and Precautions in Internet Company Mergers and Integration - A Case Study of the Didi Dache and Kuaidi Dache Merger. Enterprise Management(04),108-109.

4. X Zhang.(2018).Analysis and Reflection on the Motivation of Internet Company Mergers - A Case Study of Didi Chuxing's Acquisition. Contemporary Economics(14),50-51.

5. L Song & J Qin.(2020).Motivations and Risks of Internet Company Mergers - A Case Study of Didi Chuxing's Acquisition of Uber. E-Business Journal(10),45-46.

6. Y Shang,L Liu,Z Li,Y Qu & B Pan.(2019).Analysis of Integration in Internet Company Mergers - A Case Study of Didi's Acquisition of Uber. China Collective Economy(11),81-83.

7. Y Zheng.(2016).Case Study of Didi Chuxing's Strategic Acquisition. West Leather(24),74-75.

8. H Cai.(2019).Risk Analysis of Didi Chuxing's Acquisition of Kuaidi Dache. Modern Economic Information(16),321-322.

9. X Dou.(2018).Financial Risk Assessment and Control of Internet Mergers and Acquisitions: A Case Study of Didi's Merger and Acquisition of Uber China(The thesis for Master Degree,Beijing University of Posts and Telecommunications).

10. W Li & X Ning.(2018).Analysis of Synergy Effects in Horizontal Mergers and Acquisitions of Start-up Companies: A Case Study of Didi Chuxing's Acquisition of Uber China. Economic & Trade(13),228-229.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).

Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-145-2
ISBN (Online)
978-1-83558-146-9
Published Date
01 December 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/49/20230471
Copyright
01 December 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated