Didi Chuxing expanding into Melbourne, Australia

DidiChuxing Technology Pvt. Ltd, also known as China’s Uber, announces that it will expand into Melbourne, Australia.
This is the newest overseas market for the company, after initiating their operation in Mexico in April. Didi also invested in a local ride-sharing firm in Brazil in January. Didi’s Australia expansion has further complicated the partnerships as well as the web of rivalries in the global ride-hailing sector. This has led themto pitch this Chinese giant directly against the companies it has funded.
In Australia, Didi will compete with two other ride-hailing companies other than Uber. Ola has been the largest Uber rival in India, that has now entered the country with a Sydney launch, followed by Perth and Melbourne. Whereas another extremely popular taxi brand in eastern Europe and parts of Africa named Taxifyentered Australia last December.
Both the above mentioned firms have in the past received investments directly from Didi. Didihas contributed $500 million for Ola in 2015, and gave an undisclosed amount of money to Taxify in August 2017 as well.
A spokesperson from Diditold Quartzthat the ride-hailing industry is still a young business, and the potential for growth is substantial. Further on being asked about what Didi’s launch in Australia means, given its backing for Ola and Taxify, Didi they said that competition exists in ride-hailing, like any other flourishing industry.Taxify and Ola have yet not responded to Quartz’s request for a comment on the same.
These relationships are being further complicated by SoftBank. This Japanese mega-investor owns stakes in Ola, Didi, as well as Uber.
It is possible that Didi’s Australia launch marks a shift in its strategy for expansion apart from investing in Uberand other rivals, and towards competing with all the pother ride-hailing companies directly. If that holds true then there are many more launches expected to come outside of China by Didi.