Uber’s Chinese Rival Didi Chuxing to Launch Operations in Mexico

Although Uber owns one-fifth stake in Didi Chuxing, some American analysts say the company poses an ‘existential threat' to Uber in Latin America.

Didi Chuxing

Didi Chuxing looks set to take on its Silicon Valley rival Uber in Latin America, with the Chinese ride-sharing provider announcing plans to launch operations in Mexico in the first quarter of 2018.

The news broke in December, almost 7 months after the company had raised US$5.5 billion from investors.

Although Uber owns one-fifth stake in Didi Chuxing, some American analysts say the company poses an ‘existential threat‘ to Uber in Latin America.

Didi Chuxing is the second biggest ride-hailing service in the world and has backing from a string of deep-pocketed venture capital funds.

While Uber has raised more than US$12 billion in equity funding over the last few years, its Chinese rival overtook that, raising US$15 billion in venture funding.

In addition, the Chinese firm has invested in Uber rivals around the world, including US-based Lyft, Brazil-based 99, India’s Ola, Singapore-headquartered Grab, Estonia’s Taxify, and Careem in the Middle East.

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Uber has doubled down in Latin America in the past two years, and with 7 million users across 45 cities, Uber is already a dominant player in Mexico. Mexico City is Uber’s third-biggest market in the world, after the Brazilian cities of Sao Paulo and Rio de Janeiro.

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