Chinese ride-sharing giant Didi picks Australia for
first Western foray
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[June 15, 2018]
By Byron Kaye and Adam Jourdan
SYDNEY/SHANGHAI (Reuters) - Didi Chuxing
Technology Co Ltd, the Chinese ride-sharing company that bought the
mainland operations of Uber Technologies Inc [UBER.UL], will begin
offering its service this month in Australia, its first foray in a
Western-style 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.
Its move into Australia will be a test of how it can compete in
Western-style markets that might tend more towards U.S. brands than,
say, southeast Asia or Latin America, where China has traditionally had
a stronger influence.
"I think overall penetration rates for ride sharing versus overall
transportation is still low so the market has great potential," Dillon
Ye, who heads up Didi's Australian operations, told Reuters on Friday
when asked about competition.

Didi's 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
Australian federal government proposed anti-foreign interference laws
directed at Beijing.
Ye said political tensions had not had any effect on the firm's plans in
the market. Didi is backed by bluechip investors including SoftBank
Group Corp and Apple Inc.
Australian exporters have blamed anti-Beijing rhetoric for delays
clearing product through Chinese customs.
But just a day earlier, Australia's Sirtex Medical picked a $1.4 billion
Chinese takeover offer that trumped U.S. company Varian Medical Systems.
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The logo of Chinese ride-hailing firm Didi Chuxing is seen at their
new drivers center in Toluca, Mexico, April 23, 2018. REUTERS/Carlos
Jasso

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, though Ye said the firm would build up
its business before moving on to the "next wave" of cities, as well as into New
Zealand.
The Chinese company said it had started recruiting drivers in Melbourne in early
June "to warm responses". It had also done a trial in Geelong, a satellite city
75 kilometers (46 miles) away.
Didi cemented its spot as China's biggest ride-hailing company when it bought
Uber's operations in the country in 2016.
(Reporting by Byron Kaye in SYDNEY and Adam Jourdan in SHANGHAI; Editing by
Muralikumar Anantharaman and Mark Potter)
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