Didi Chuxing, a ride sharing giant of China is planning to expand its wings in North America this year
The Didi Chuxing which is a ride sharing giant of China is planning to expand its wings in North America this year. This is the first move for international expansion by the company and it could start a new phase of competition with the Uber.The Uber has already sold its Chinese business to the Didi Chuxing in the year 2016 after a prolonged and expensive battle. The Didi stands out as the second most valued privately owned company after Uber .The decision of the company to recruit the drivers and offer rides in Mexico is looked upon as a bow to Uber at a time when this firm has already been reeling from the series of various self inclined scandals.
Since this company earlier had no cars outside China, this means entering into the Mexico is a part of its first international operation
Before a month, this company has met with the ProMexico which is a Government and trade investment body for discussing all sorts of the opportunities in the country. The company has also established an R&D centre earlier this year in the Mountain View California. This R& D centre is focussing on hiring the top tech talents for working in the field of artificial intelligence and also the self driving car technology. This company earlier has no cars outside China and this means entering into the Mexico is a part of its first international operation. Although Didi Tuxing is a well known brand in China but it is very less known in the Mexico region. The company will be recruiting the local drivers for working on the platform. In April this year, the company has already raised $ 5.5 billion from the investors in an effort to fund its global expansion.
This time it will be competing with ride hailing company Cabify of Spain which is already operating in seven of the Mexican cities
The company has already invested in the Uber rivals too all around the world which includes the US based Lyft,Brazil based 99,Indian Ola,Singapore based Grab,Estonia’s Taxify and also the Careem in the Middle East. This time it will be competing with the ride hailing company cabify of Spain which is already operating in seven of the Mexican cities. In spite of the presence of Uber in Mexico, the competitors still have a room for expansion especially when they are able to reach the unbanked consumers while addressing the regulatory concerns about the cash.
Didi Tuxing has gained recognition worldwide when Apple Company made a decision to invest $1 billion in it
Although authorities in Mexico has a fear that by allowing the ride sharing applications to accept the cash payments would be putting them into the direct competition with the traditional taxis which are quite a strong political force in some of the Mexican cities. The company has gained the recognition worldwide when the Apple Company made a decision to invest $1 billion in it.