Published By : 15 Jun 2018 | Published By : QYRESEARCH
The largest cab-aggregator in China, Didi Chuxing, is surging ahead with its ambitious expansion of geographical footprints. In line with it, it has announced foray into the Australia market this month itself.
The company had earlier acquired Uber’s business in China in 2016. It added that it would begin serving consumers in Melbourne starting from June 25 after a month-long trial in Geelong – a city situated about 75km away.
Subsidiary of Didi Would Conduct Business in Australia
The business, however, would be conducted by a subsidiary of Didi in Australia. To entice customers initially, it envisages to roll out a series of welcome packages to both riders and drivers pertaining to promotions and discounts. In preparation, it begun signing up for drivers from June 1 itself.
With the ambitious launch in Australia, the company would once again directly compete with Uber. Incidentally, both the ride-hailing giants have Didi has their investor.
This is not Didi Chuxing’s first stint abroad. Earlier it had expanded into the markets for Mexico, Taiwan, and Brazil. In December, Didi had mopped up about US$4 billion in order to develop AI and other technologies and also to expand geographically.
Taking the organic growth path, Didi is developing its own team in Australia. This was not the case in Taiwan though where it adopted a franchise model. It entered the market in Brazil through an acquisition by gobbling Uber’s rival 99 for US$1 billion.
Now it aims to crack the market in Japan.