Didi Expansion: Ride-sharing app gaining in Latin America
Updated 16:34, 20-Dec-2018
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03:17
Ride-sharing companies are looking to expand their markets as their apps grow in popularity on a global scale. The Chinese company DiDi Chuxing, for one, is beginning to gain a foothold in Latin America. CGTN's Alasdair Baverstock reports from Mexico City.
After outmaneuvering Uber back home in China, ride-hailing app DiDi Chuxing is launching a campaign to establish itself in its US rival's backyard, Mexico. Mexico city is among Uber's busiest global locations, and after five years of operations in the country, the US tech giant counts nearly a quarter million drivers and seven million users across 35 cities. It's a market that DiDi wants a piece of.
PABLO MONDRAGÓN, DIRECTOR DIDI MEXICO "Why Mexico? Well, Mexico and LatAm as a region is one of the fastest growing in terms of internet and smartphone penetration. And for Mexico City, it's one of the biggest cities in the world, and in terms of mobility, there are many challenges. So that's why services like DiDi are very easy for passengers and citizens to adopt."
The Chinese company has been pushing hard to recruit drivers and passengers in Mexico, offering attractive bonuses to drivers and discounts to new users. Carlos Beaña made the switch, after what he saw as a bad experience driving with Uber.
CARLOS BEAÑA, DIDI DRIVER MEXICO CITY "The commissions Uber was charging were too high, and they would penalize you for almost anything. You'd arrive a couple of minutes late and get penalized, things like that."
DiDi chased Uber out of China two years ago with a campaign of discounted rides, and early signs show a similar strategy may be underway in Mexico.
ALASDAIR BAVERSTOCK MEXICO CITY "Mexico has traffic congestion, poor public transportation and almost 96 million smartphone users in 2017, so while it may seem ideal for ride-sharing apps, operating in the country has not been straightforward for competing companies."
In October, an Uber driver was arrested for the abduction, rape and murder of a seven-year-old girl. Elsewhere, the company has been fined by the federal government for breaching consumer rights laws. DiDi Mexico says it's committed to avoiding these types of issues.
PABLO MONDRAGÓN, DIRECTOR DIDI MEXICO "Every city, it has their own particularities. It's how we want to tackle all of these challenges, so it's based on the priority we have in terms of safety and customer service. It's how can we work closely with our drivers and passengers, and how can we develop technology and processes that are tailored for Mexico country [sic] and specific cities."
As DiDi establishes itself in Mexico, the multi-billion dollar company is seeking a wider foothold across Latin America. The question now is where it will chooses as its next battleground. Alasdair Baverstock, CGTN, Mexico City.