China’s ride-hailing company Didi Chuxing earned the title of “Uber Slayer” in 2016. By selling its China business to its rival, Uber confirmed that the Chinese market was not only full of potential but peril. These days, however, things are changing with new arrivals challenging Didi’s dominance.

Meituan Dianping, the Tencent-backed O2O service platform which is now eyeing a Hong Kong IPO, has gotten the most headlines locally, but there is also China’s largest travel agency Ctrip and Alibaba-owned AutoNavi. As Didi and Meituan start offering ride coupons once again, many are watching closely for signs of another subsidy war on the scale of Didi’s battles with Uber—a rivalry that led to billions of dollars of losses on both sides.

Didi now holds between 90-95% of the market, according to most often repeated estimates. However, China has room for more—consulting firm Roland Berger estimates that 40% of China’s taxi demand is unmet. And compared to the US, China is facing a much different ride-hailing landscape with greater bottlenecks in supply than demand, Vice President of Didi Stephen Zhu explained at a recent Goldman Sachs conference.

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Masha Borak

Masha Borak is a technology reporter based in Beijing. Write to her at masha.borak [at] technode.com. Pitches with the word "disruptive" will be ignored. Read a good book - learn some more adjectives.