LatAm List – Didi Chuxing, the Chinese ride hailing company, is rapidly increasing its share in the Latin America market, aggressively competing with the US transport app Uber.
Since the $1B acquisition of 99, the second largest ride-hailing company in Brazil, Didi Chuxing has expanded into many cities in Brazil, Mexico, Chile, and Colombia. In Mexico, Didi now holds 30% of market shares where Uber previously held 87%, according to a study from Dalia Research.
The Latin American market represented only 2% growth for Uber, making Latin America its weakest market and revealing that the competition from other ride-hailing services is beginning to have an effect on the US-funded company.
Globally, Didi registers over 1.1B trips through its taxi service, partnering with more than 700 taxi companies worldwide. Brazil accounts for more than 1 million daily trips on the app.
Both Uber and Didi are funded by SoftBank, a problematic conflict as SoftBank has pledged to invest in the budding tech market. China is not the only country to pose competition for US-funded companies, as the Colombian food-delivery startup Rappi is now challenging UberEats for customers as the Latin American startup ecosystem grows.
Read more on Latam Business Weekly.
Learn more about Didi Chuxing:
Didi acquires 99 for $1B to expand into Latin America