China's leading ride-hailing service provider, Didi Chuxing, is accelerating its overseas expansion plans and announced that it will be launching operations in Australia's most populous city, Sydney.
The expansion is aimed at increasing the company's presence outside of its home market, where it is experiencing a decline in business due to the overall economic slowdown and the recent spread of the viral epidemic. Didi Chuxing revealed that it will officially be starting ride-hailing operations in Sydney on March 16.
The ride-hailing firm currently has operations in other major cities in Australia, a market which it entered back in May 2018. Didi Australia general manager, Lyn Ma, mentioned in a statement on Monday that entering the global economic and cultural hub of Australia is a major milestone for the company as it continued to serve millions of its customers throughout the country.
Following the recent outbreak in China, Didi Chuxing and other ride-hailing operators have struggled with the continued slowdown in demand. Since the start of the epidemic, operators have lost multiple drivers, who have refused to continue to work amid fears of possibly getting infected by their passengers. The issue exacerbated the industry's prospects, which is already suffering from the government-imposed travel restrictions across China.
Government officials have rolled out measures and strict regulations for taxi and ride-hailing operators over the past weeks, including requiring drivers to wear face masks at all times as well as advising them to disinfect their vehicles regularly.
Analysts have pointed out that the slowdown in demand has affected all ride-hailing firms with operations in China. Due to the ongoing restrictions and suspensions, the overall domestic demand for ride-hailing services is expected to shrink further in the coming quarters.
Unlike other Chinese startups, Didi Chuxing does have the advantage of having already established its footprint in other major markets. As of the moment, the ride-hailing company does have active operations in countries such as Brazil, Japan, Mexico, Chile, and Columbia.
The company is also accelerating its efforts to purchase stakes in its competitors. Currently, Didi Chuxing has purchased stakes in other ride-hailing platforms such as Ola and Grab in Asia, Lyft in the United States, Careem in the Middle East, and Taxify in Europe.
According to the company, its operations in China and other markets currently provide transport services to over 550 million users. Its platform currently has tens of millions of drivers, who enjoy lucrative opportunities using their proven business model. Didi Chuxing boasted that its platform records more than 10 billion trips annually.
