Didi Set to Launch into Australia Taxi-calling Industry

About Didi Chuxing

Didi Kuaidi is a taxi-calling company that was formed in 2015 out of a merger between Didi Dache and Kuaidi Dache. It was subsequently renamed Didi Chuxing. The company is currently valued at nearly $56bn and has been heralded as the world’s most valuable start-up and is popularly known for making Uber’s existence in China short-lived.

Didi was the propelling force behind a business alliance with other international ride-hailing firms such as US firm Lyft, India’s Ola and South East Asia’s Grab which allows its users call for taxis from the partner companies when outside China. The Chinese ride-hailing giant also has the backing of internet companies such as Alibaba and Tencent. The Chinese taxi-calling giant claims to have about 550 million users across its transport services including express cars, premier taxis, and food delivery services.

Didi’s global expansion

Didi’s expansion into Australia is coming less than 2 months after it expanded into Mexico

Media outlets posit that Didi’s expansion into Australia will help the company determine whether it has what it takes to compete in markets that are Western inclined considering the fact that Australia is more pro-US brands.

The ride-hailing company recently launched activities in Mexico and just completed a month’s trial period in Geelong, Victoria. According to the company’s spokesman, the global expansion is one of the company’s vital strategies.  Didi’s expansion into Australia is coming less than 2 months after its expansion into the Mexico ride-hailing industry.

Earlier this year, the company expanded into the Brazilian market by taking over Brazil’s 99, a local ride-hailing firm. Media outlets have also reported that sometimes in February, Didi announced its prospective taxi-calling venture in Japan as a joint business with SoftBank, a Japanese tech company.

Australia ride-hailing industry

Reports indicate that Uber currently enjoys dominance in Australia ride-hailing industry. Reports also indicate that there are new entrants to the industry including Europe’s Taxify and India’s Ola.  The local Australian Firm, GoCatch also its fair share of customers.

Didi has reportedly pronounced that “Didi Express” which is the company’s major ride-sharing arm will be offered in Melbourne, Australia and it is set to launch on the 25th of this month. Melbourne is a city with a population of about 4.5 million people and has been recorded as the entry point popularly used by most companies in the economy sharing industry. Media outlets record that this is where companies like Uber and several Singapore and Chinese dockless bicycle rental companies started from in Australia.

Sources claim that Didi began drivers recruitment earlier this month, although the company has refused to mention how many drivers it would have on the roads. A Didi spokesperson reportedly told a media outlet that Melbourne drivers have responded well to their product and almost 100 drivers were in attendance on one if the days of their drivers registration.

The firm also said that the Didi app will be made available for downloads from 15th of June and users will get 50% off their trips from when Didi officially launches till the end of July. However, the firm stated that the maximum amount on which the discounts can be enjoyed is 10 Australian dollars ($7.45) on a trip and a maximum number of 2 trips.

While addressing a news agency on competition fears, Dillon Ye, the head of Didi’s Australian operations opined that the availability of ride-sharing options, when compared with the total transportation, isn’t as high and that made the potential of the market a great one.

The tension between the Australian and the Chinese government has no effect on Didi’s position in the Australia ride-hailing industry

Sources claim that Didi’s announcement serves as an indication that business relations between China and Australia are being carried out in a regular manner even though the relations between their governments are encountering major hitches following the Australian government’s proposition of anti-foreign interferences targeted at Beijing.

Ye reportedly stated that the tension between the governments did not affect the firm’s position in the Australia ride-hailing industry. The company didn’t give specific details about its investment plans neither did it state a particular time when it hopes to expand beyond Melbourne although Ye stated that the company will build up its business before expanding into other cities and subsequently into New Zealand.

Reacting to Didi’s launch in Australia, an Uber spokesperson via email stated that the company welcomed competition as it helped the company maintain its focus on offering its riders the best experience and maintaining a healthy list of driver and other partners.