Chinese ride-hailing giant Didi Chuxing is moving forward with its ambitious global expansion with the establishment of a new business unit in Russia. Despite the negative economic impact of the coronavirus pandemic, the company has chosen to launch its ride-hailing platform in Russia to further diversify its business by accessing more global markets.
The Beijing-based company announced late last week that its ride-hailing services are now officially available in Russia. The launch marks the company's first foray into the European market, with Russia becoming the first stop in its global road map. According to the company, its services will initially become available in the city of Kazan, the capital of the Russian Republic of Tatarstan.
In the coming weeks, the company plans to make its ride-hailing services in more cities across the country. The launch of its service in Russia comes as the company reached a new milestone, with its platform having surpassed 50 million peak global daily bookings for the first time last week.
Didi Chuxing stated that the surge in bookings on its platform likely indicates the continued recovery in consumption and economic activity in its major markets. The company currently offers its ride-hailing services and platform in several international markets outside of China including Japan, Mexico, Australia, Brazil, Colombia, Chile, Costa Rica and Panama.
Industry experts have pointed out that making its services available in Russia should allow the company to further expand its customer base. A study conducted by HSBC last year showed that more than 45 percent of Russians actively use ride-hailing services.
Earlier in the year, Didi's chief executive officer, Cheng Wei, claimed that the company's goal will be to reach at least 100 million global daily bookings and an accumulated 800 million monthly active users throughout its markets over the next three years. Apart from its ride-hailing services, Didi Chuxing is also planning to offer its car rental, food delivery, on-demand freight services, and financial services in Russia and Europe in the coming years.
The current market leader in Russia is local ride-hailing services provider Yandex Taxi. The company, which was founded by Russian internet firm Yandex NV, controls about 27 percent of the country's ride-hailing market. In 2018, Yandex NV merged its Yandex Taxi unit with Uber in Russia, Belarus, Armenia, Georgia, Azerbaijan and Kazakhstan.
