Press Esc to close

Uber's Chinese rival Didi to enter Mexico

Reuters Dec 10 2017, 21:52 IST
People walk down a taxi lane during a strike by taxi drivers to protest what they say is unfair competition from new car sharing companies such as Uber and Cabify, in Madrid, Spain, November 29, 2017. REUTERS/Sergio Perez

People walk down a taxi lane during a strike by taxi drivers to protest what they say is unfair competition from new car sharing companies such as Uber and Cabify, in Madrid, Spain, November 29, 2017. REUTERS/Sergio Perez

Didi Chuxing, China's ride-hailing behemoth, plans to expand into Mexico next year, intensifying its global rivalry with Uber, according to two sources familiar with the plans.

Didi has spoken before of global ambitions, but has not formally announced where or when it would expand. The Chinese company is the second-most highly valued, venture-backed private firm in the world, after Uber Technologies Inc. Didi has no cars outside China, meaning Mexico could be its first international operation. Didi, whose brand is ubiquitous in China but little-known in the West, will launch a smartphone app in Mexico and recruit local drivers to the platform, according to the sources, who declined to be named.

It is unclear which cities Didi will target, although one of the sources said the company was aiming to launch in the first quarter of next year. The company has already begun trying to recruit corporate talent in the sector, the source added.

A spokesman for Didi declined to comment. About a month ago, Didi met with ProMexico, a government trade and investment body, to discuss opportunities in the country, according to a Mexican official, who declined to provide further details.

The company has made no secret of its desire to expand beyond China, particularly in light of the growing number of Chinese customers who travel overseas. In April, Didi raised $5.5 billion from investors, in part to fund global expansion.

But until now, its plans have been limited to financial commitments to ride-hailing companies in other countries and a research lab in Silicon Valley that opened earlier this year.

Didi has invested in Uber rivals around the world, including US-based Lyft, Brazil-based 99, India's Ola, Singapore-headquartered Grab, Estonia's Taxify and Careem in the Middle East.

The company acquired Uber's China business last year after Uber lost roughly $2 billion trying to compete. After ceding its China business, Uber doubled down on Latin America, where Didi is now encroaching. Uber has established a stronghold in Mexico, with seven million users across 45 cities. Mexico City is Uber's third-biggest market in the world by rides, after the Brazilian cities of Sao Paulo and Rio de Janeiro.

Go to Top

More from this section
Most trending stories
Photo Gallery
Narendra Modi, Benjamin Netanyahu and his wife Sara during their visit to Sabarmati Ashram...

Narendra Modi, Benjamin Netanyahu and his wife Sara during their visit to Sabarmati Ashram...

Narendra Modi, Benjamin Netanyahu and his wife Sara during their visit to Sabarmati Ashram...

Narendra Modi, Benjamin Netanyahu and his wife Sara during their visit to Sabarmati Ashram...

New recruits of Madras Engineer Group and Centre during a military training demonstration...

New recruits of Madras Engineer Group and Centre during a military training demonstration...

Defence Minister Nirmala Sitharaman waves from the cock-pit of IAF's Sukhoi-30 MKI plane...

Defence Minister Nirmala Sitharaman waves from the cock-pit of IAF's Sukhoi-30 MKI plane...

R Madhavan, Amit Sadh, Sapna Pabbi and Vijay Subramaniamduring the trailer launch...

R Madhavan, Amit Sadh, Sapna Pabbi and Vijay Subramaniamduring the trailer launch...

The newly-raised all women bikers contingent of Border Security Force (BSF) ‘Daredevils' practice...

The newly-raised all women bikers contingent of Border Security Force (BSF) ‘Daredevils' practice...

The newly-raised all women bikers contingent of BSF Daredevils...

The newly-raised all women bikers contingent of BSF Daredevils...

India and Japanese Coast Guard ships participate in a joint naval drill as part of the search...

India and Japanese Coast Guard ships participate in a joint naval drill as part of the search...

Homeless people sharing meal at a pavement in New Delhi...

Homeless people sharing meal at a pavement in New Delhi...

Camel-mounted BSF soldiers participate in a rehearsal for the Beating Retreat ceremony...

Camel-mounted BSF soldiers participate in a rehearsal for the Beating Retreat ceremony...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.