The Chinese version of TikTok named 'Douyin' launched a service offering expansion in the app, as ByteDance tries to monetize the application in the local sector. Ride-hailing services are now available to 700+ million daily active users.
The ByteDance logo is seen on the ByteDance headquarters building in Beijing on July 8, 2020. - Video sharing app TikTok, which is owned by Chinese company ByteDance, announced on July 6 it was pulling out of Hong Kong, less than a week after a new national security law went into effect. Photo by GREG BAKER/AFP via Getty Images
Introducing Ride-Hailing Service
Douyin, the Chinese version of Tiktok, rolled out its newest offerings on the platform. Based on a report from South China Morning Post, ByteDance introduced the ride-hailing service as the company attempts to make a profit.
This will include T3Go through the use of its mini-application platform, which is backed by two of the biggest automakers that are owned by the state, Tencent and Alibaba.
As the company launched this new feature, competitors might have to step up their game in the market since the company now has an advantage against them. This could make a fresh competition with the most used applications in the local area.
The T3Go mini app is accessible to all users of Douyin. But the report clarified that this will be needed to enable a folded menu first. It appears the same users took reservations for this app.
Possible Outcomes and Reasons
This might be Douyin's latest move to be valued by leading players on the field. Pandaily reported that this feature may potentially become a third-party application that legitimizes ride-hailing services, similar to AutoNavi and WeChat.
The company has also been vocal with its exploration of transportation services, which began during the first half of the year. During this time, the company teased the supposed launch of travel services. But due to the huge user group and limited time for checking relevant regulations, it was postponed.
Aside from these reasons, Douyin also found out that videos related to transportation, travel, and Didi drivers are the most frequently watched videos on the platform, with over 100 million times watched in only 30 days.
Strategy
For the local services sector strategy, Douyin is targeting places like Meituan and Didi Chuxing. These are both areas that are dominated by players.
Chinese Ride-Hailing Analyst stated, "Douyin's strength is that the app has a huge user base and online traffic. But it lags in ease of use and intuitive design when compared to the ride-hailing functions in online maps services."
ByteDance clarified that the possibility of having its own ride-hailing platform is impossible right now. The company prioritizes working with service providers from a wide range of sectors, Tech Planet reported. However, no confirmation was made, as TikTok denied to comment regarding this.
This feature came after they signed a partnership with several delivery platforms that are both in demand and relevant at these times. ByteDance now offers food delivery orders from vendors that set up accounts on the application.
