As ride-sharing apps grow in popularity on a global scale, companies are looking to other markets to boost their businesses. And in Latin America, the Chinese ride-hailing company Didi Chuxing is beginning to gain a foothold.
After outmaneuvering Uber back home in China, Didi is launching a campaign to establish itself in its U.S. rival's backyard – Mexico. It started expanding into Mexico from the beginning of this year.
However, many say the firm has not yet regained the respect of domestic consumers after a series of incidents. It has not backed down on its ambition to expand internationally.
Despite the damage to its reputation after a series of safety incidents, Didi is still the number one player in China's car-hailing industry by far, said Liu Chunsheng, associate professor at Beijing's Central University of Finance and Economics to CGTN.
"Didi's trying to exploring the international market. In my opinion, DiDi's strategy is very ambitious and aggressive. However, it needs to take some risks when going globally."
Didi elbowed Uber out of China in 2016, but the two have yet to finish their competition overseas.
Consultancy firm Roland Berger says Didi has nearly 80 percent of the Chinese car-hailing market. The firm was valued at 56 billion U.S. dollars in a 2017 funding round. It's a substantial figure, but it's still just over half of Uber's initial public offering proposal released in October. The Wall Street Journal said the U.S. company can go public at 120 billion dollars.
Analysts say Didi's entrance to Mexico will lead to a fierce fight between the two, as the country is currently Uber's third largest market. Didi took on Uber and won in China.
"Uber cut down its business from some of its markets, including Southeast Asia and Russia, but its financial performance becomes better. While DiDi is trying to explore more international markets, and it will take a longer time to see who will win the game finally," said Liu.
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