Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Exclusive: China ride-hailing giant Didi plans Chile, Peru launches to take on Uber

Published 02/16/2019, 07:35 AM
© Reuters. FILE PHOTO: The logo of Didi Chuxing is seen at a Didi station in Beijing
LNKD
-

By Aislinn Laing and Adam Jourdan

SANTIAGO/BUENOS AIRES (Reuters) - Chinese ride-hailing giant Didi Chuxing is planning to take on U.S. rival Uber in some of Latin America's fastest-growing markets, recruiting managers in Chile, Peru and Colombia, according to job postings and a company official.

Didi has moved senior executives from China to lead its expansion in markets like Chile and Peru, and began in recent weeks advertising for driver operations, crisis management, marketing and business development personnel in those countries, an analysis of LinkedIn (NYSE:LNKD) postings show.

Didi's widening expansion, if successful, could make for a bumpier ride for San Francisco-based Uber Technologies Inc in Latin America, one of its fastest growth regions, as it gets ready to go public as soon as later this year.

The two firms are already battling in Brazil, where Didi bought local start-up 99 in January last year, and Mexico, where the Chinese firm lured drivers with higher pay and bonuses for signing up other drivers and passengers.

Didi is China's dominant ride-hailing firm and is backed by investors including Japan's SoftBank Group Corp. In 2016, Didi bought Uber's local Chinese operations following a bruising two-year battle for domination in China.

The push comes as Didi is laying off staff in China as it grapples with regulatory scrutiny, reportedly significant financial losses and public backlash over the murder of two of its customers, sources told Reuters.

The firm's new Chile public affairs manager, Felipe Contreras, who was previously Uber's corporate communications chief in Chile, confirmed reports Didi was looking to hire a senior executive from Chilean cellular phone company WOM to lead its engagement with government and public policy operations.

"We haven't announced a date; this is internal to the company," he said when asked about the timing of the hiring.

Contreras confirmed the launch plans and told Reuters that the company's aim was to be a "market leader" in Chile based on "quality", in a market where Uber, Spain's Cabify and Greece's Beat already transport thousands of passengers a day.

Didi is still mulling the "best time" to launch its local service, he said, saying: "We are still in the planning and recruitment phase."

Chile's government has yet to pass a law regulating ride-sharing applications, resulting in a legal gray area which sees Uber, Cabify and Beat drivers routinely fined by the police for operating without public transport licenses.

The law is still at committee stage and would need approval by both Chile's lower and upper chambers, a process which could take up to a year.

© Reuters. FILE PHOTO: The logo of Didi Chuxing is seen at a Didi station in Beijing

Contreras said the timeline for Didi's launch would "not necessarily" hinge on the law's eventual passing. "We are studying all the variables," he said.

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.