🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Chinese ride-sharing giant Didi picks Australia for first Western foray

Published 15/06/2018, 02:11 pm
© Reuters.  Chinese ride-sharing giant Didi picks Australia for first Western foray
AAPL
-
VAR
-
SRX
-
9984
-

By Byron Kaye

SYDNEY, June 15 (Reuters) - Didi Chuxing Technology Co Ltd, the Chinese ride-sharing company which bought the mainland operations of Uber Technologies Inc UBER.UL , said it will begin offering its service this month in Australia, its first foray in a Western country.

The scheduled June 25 launch in Australia's second biggest city Melbourne sets Didi up for a showdown with the U.S. rival it bought out in China in exchange for a stake. Didi started expanding outside Asia in Mexico earlier this year, and has said globalisation is a core strategy. announcement on Friday about the launch shows business deals between China and Australia are being struck as normal even as relations between the two governments have hit a speedbump after the Federal Government proposed anti-foreign interference laws directed at Beijing.

Australian exporters have blamed anti-Beijing rhetoric for delays clearing product through Chinese Customs. just a day earlier, Australia's Sirtex Medical SRX.AX picked a $1.4 billion Chinese takeover offer that trumped U.S. company Varian Medical Systems (NYSE:VAR) VAR.N . has diversified mobility needs, a business-friendly environment and an inclusive culture," Didi, which is backed by bluechip investors including SoftBank Group Corp 9984.T and Apple Inc AAPL.O , said in a statement.

"Didi wishes to contribute to the growth of Australia as a long-term investor and business partner by offering affordable, reliable and convenient mobility options and income-generating opportunities," it added.

Melbourne, a city of 4.5 million people with cheaper real estate than larger Sydney, is a popular Australian entry point for companies in the so-called "sharing economy". Uber has routinely launched new offerings in the city, while several Chinese and Singapore-owned dockless bicycle rental companies have picked Melbourne to start in Australia.

"We welcome competition because it keeps us focused on delivering the very best product and customer experience for riders, driver partners and Uber Eats customers and partners," an Uber spokeswoman said in an email.

Didi did not give any investment details or a timeline for expanding its Australian operation outside Melbourne and was not immediately available for comment.

Its statement said it would "shape product offerings and user experience in Australia based on the feedback from drivers and passengers in Melbourne and Geelong", a satellite city 75 kilometres (46 miles) away.

The Chinese company started recruiting drivers in Melbourne in early June "to warm responses", it added.

Didi cemented its spot as China's biggest ride-hailing company when it bought Uber's operations in the country in 2016.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.