Tuesday, November, 19, 2019 09:05:51

The new products have been introduced across the nation, after they were first tested in 10 cities, claims the firm.

Reports confirm that Chinese conglomerate Didi Chuxing has launched a suite of financial products, which include lending and crowdfunding, in an attempt to diversify beyond its ride hailing business after a year of safety scandals. Apparently, this move comes on the heels of a reorganization of the company which was announced in December and was aimed at improving operating efficiency as well as safety on its platform.

The firm recently stated that these new products have now been introduced across the nation, after they were first tested in 10 cities. The products seemingly include crowd funding for critical illnesses, wealth management as well as credit and lending, which were all focused on temporary, short term workers.

Further from the reports, these products bring the firm into competition with technology peer Tencent Holdings Ltd. and investor Alibaba Group Holding Ltd. The move also comes at a time when rivals, which includes other firms backed by Alibaba, are pushing into the ride sharing market which is dominated by Didi, with an aim of tapping the unmet demand resulting from regulatory changes.

Sources familiar with the matter cited that Didi Chuxing is itself facing increased scrutiny and new rules from authorities after a series of high profile safety incidents, which include the murders of two female passengers of Didi in separate cases. The Ministry of Transport said in a statement that Didi was out of control and took a pledge for tightening the driver recruitment standards.

Since the 2017 regulations supposedly restrained the number of eligible applicants, the firm is already facing shortage of the number of drivers in major cities. Didi Chuxing’s backers include Japan’s SoftBank Group Corp, Apple Inc and U.S. peer Uber Technologies Inc. The company is purportedly reshuffling its domestic business while it is expanding globally with new services in Australia as well as South America.