Didi shuts down operations in SA

Chinese ride-hailing provider, Didi has shut down its operations in South Africa - one year after it launched in the country, marking its entry into the continent.

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A Didi spokesperson in South Africa confirmed the closure to TechCrunch but did not divulge the reasons for pulling the plug, saying only that the ride-hailing service provider has made the difficult decision to end its operation in South Africa.

According to TechCrunch, Didi’s exit comes at a time when taxi drivers in South Africa are calling for the regulation of the sector citing exploitation and poor work conditions.

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Select drivers that recently went on strike also cited reduced earnings given the rising fuel prices and the 'high commissions' charged by the ride-hailing firms.

Didi 'hinted' that its departure is expected to leave resources for more promising markets like Egypt, where it launched in the last quarter of 2021. Reports indicate that it is exploring expanding to Nigeria too. The taxi-hailing company has operations in 16 countries, including Russia and Mexico.

Furthermore, the spokesperson told TechCrunch that the ride-hailing service provider has re-evaluated where it can make the most positive impact in the short-term and is focusing on developing even deeper capabilities in other existing markets.