DIDI’s development process and HR strategy
Introduction to the development process of DIDI
Didi Chuxing was established in 2012 and has received full support from Tencent, CITIC Industry Fund and International Investment Group. It has also realized the docking of various payment platforms and established a mobile Internet ecosystem inside and outside the enterprise. On the platform of Internet sharing economy, DIDI has launched express , special and hitchhiker services in addition to taxi services. As of 2020, DIDI has become the largest mobile travel service platform in China, with a market share of nearly 80%.
DIDI’s HR Strategy
The new human resource management in the DIDI Internet era is an assessment method based on passenger satisfaction. Before 2015, the traditional taxi industry had the following problems: drivers didn’t care about the passengers’ ride experience, the cab interior environment was bad, the driver were not afraid of passengers’ complaints, and the service attitude was bad. A large number of drivers did not pay attention to the interests of customers, and there was a common practice of deliberate detour.
First of all, under the background of sharing economy, DIDI in the traditional taxi industry has taken measures to improve service quality and attract users to adopt modern taxi hailing methods. Specifically, DIDI drivers should realize that passenger satisfaction is an important factor that affects their income. From the basic “star rating” to “review of service points” to passenger opinion inquiry, the problems in the traditional taxi industry have been solved.
Secondly, DIDI highlights flexible working schedule. DIDI has adopted a new time management mode to solve the problem that taxi drivers in the traditional taxi industry bear high cost of operation and licensing fees, and that the morning and evening rush hours are the shift handover time for taxi drivers. DIDI drivers only need to work when they are willing to work, and there is no mandatory requirement for working hours. In addition, Didi introduced the algorithm that compensate driver more during morning and even rush hours, using basic economic principle to manger worker to a shift during high demanded hours.
Thirdly, DIDI has good human resource incentives. DIDI’s incentive policy not only encourages the quality of driver service, but also encourages the quantity of driver; The driver are no longer selective on which passenger they take to boost their income. In addition, DIDI will allocate DIDI drivers through algorithm to avoid continuous short trips with low pay. At the same time, DIDI will distribute higher paying trips to driver with higher service ranking. In the morning and evening rush hours, DIDI introduced tiered prices to encourage DIDI drivers to take more orders with a goal to achieve the market supply and demand balance.
Challenges by DIDI human resources
Due to the development of sharing economy, DIDI drivers and other labor vehicles cannot be defined as employees, but only as independent contractors. Although their income is higher than that of the traditional taxi industry, they face problems such as no retirement program, no minimum wage, no overtime pay, and lack of medical insurance. On the premise of protecting workers, DIDI should adopt a better human resource strategy to protect the welfare of DIDI drivers, such as providing accident insurance, pension and third party insurance policies for all DIDI drivers.