DiDi rides the Uber playbook with Velocity Frequent Flyer points move

DiDi users will now earn Velocity Frequent Flyer points on every trip in a new deal announced between Virgin and the rideshare company.

DiDi has partnered with Virgin to give out Velocity Frequent Flyer points on every trip.

Frequent flyers are set to ramp up their earnings after Australia’s second-largest rideshare operator has followed the Uber playbook and partnered with a major airline.

Customers of Chinese rideshare giant DiDi will now earn Velocity Frequent Flyer points on every trip after the company landed the partnership with Australia’s second-largest airline Virgin.

The move from DiDi, which operates across 28 Australia cities, is its first attempt at a genuine loyalty program in Australia and the company is hoping it’ll be enough to entice Virgin customers to make the switch from its bigger competitor Uber.

Uber has had a similar play with Qantas at hand for some time, but it is one that is limited to trips to and from an airport – and that’s what DiDi spokesman Dan Jordan believes will give the company an edge.

“At DiDi, we are relentless in our pursuit of offering our riders the best possible value and experience and now, in partnership with Velocity Frequent Flyer, we’re reaching new heights,” he said.

“Riding with DiDi can now get you one step closer to your next adventure. From Toorak to Tokyo or Cairns to Canada, we’re excited to welcome in a new era of travel for our Australian customers.”

The partnership follows several rideshare operators leaving the country in recent months, the latest of which was Ola, departing the country on April 12.

DiDi customers will receive 1000 points after adding their Velocity Frequent Flyer number to their account.

Ola followed the exit of Indian rideshare InDrive, which quietly packed up its operations, taking with it its negotiable rideshare option.

Mr Jordan told The Australian that DiDi still sees itself as the “challenger” brand coming up against its major multinational competitor Uber.

How it planned to grow its market share against the US rideshare giant was by being the more affordable option and the operator which paid its drivers a larger slice of each trip.

“Ultimately, what we try to do is provide value and maximise the earning opportunity for our drivers. It’s a strategy we’re using in smaller markets where rideshare adoption isn’t huge,” he said.

“Rideshare drivers in Australia have the ability to drive across multiple platforms. We’re fighting for their attention, and they will choose whatever platform that provides them with the greatest earning opportunity.”

DiDi’s service fee was 18 per cent, which is almost 10 per cent less than Uber’s 27.5 per cent cut.

The partnership would hopefully entice a savvy crowd of point accruing frequent flyers to the platform, many of whom are already earning points at major retailers and supermarkets including 7-Eleven, and Flybuys who partner with retailers Coles, Coles Express, Bunnings, Officeworks, Kmart, Target, Liquorland and First Choice Liquor, Mr Jordan said.

DiDi’s head of Australian operations Lida Xu and Velocity Frequent Flyer CEO Nick Rohrlach.

Velocity Frequent Flyer had grown its membership base 34 per cent over the past year, managing to bring in a further one million members.

As of April, it had around 12 million members, and Velocity Frequent Flyer chief executive Nick Rohrlach said he expected regular DiDi customers would soon switch across.

“We are the only airline loyalty program in Australia, giving members the opportunity to earn points on every rideshare trip they take. DiDi also offers Australians affordable everyday fares, which aligns with our ongoing focus of delivering value to our members across all areas of the program,” he said.

“Similarly to AGL in energy, DiDi fills an important gap in the Velocity program to ensure members can earn Points in just about every facet of their daily lives.”

Mr Rohrlach and Mr Jordan said both companies had seen their customers seeking more value and becoming pickier with spending amid inflation.

“At a time when value is so important to Australians, we are proud to be opening up a new and convenient way for our members to earn Velocity Points for going about their everyday,” Mr Rohrlach said.

“Australians could soon be riding their way to a holiday thanks to our partnership with DiDi, and we look forward to seeing our 12 million members benefit from earning Points with every ride they take.”