China’s biggest ride-hailing company Didi Chuxing (滴滴出行) has launched operations in Mexico City, setting up a war against US rival Uber, reported Chinese tech news aggregator 36kr.com (36氪).
Didi would offer its drivers 10% service rate in addition to existing benefits including 24-hour support line, taxi drivers club, and training courses.
Uber is the biggest player in Mexico at present.
The Chinese firm piloted in Toluca city in April followed by Monterrey and Guadalajara.
In a bid to break Uber’s stronghold in Latin America, Didi is preparing to roll out services in more cities including Chihuahua, Mexicali, Tijuana, Merida, and Puebla.
The teams in Mexico, California and Beijing will work in tandem to bring advanced algorithm and safety technologies to the Mexican market, Didi said.
Up until now, most of Didi’s global expansion strategies focused largely on investing and partnering with local cab-hailing enterprises.
The Chinese company had invested in ride-hailing platforms including Lyft (US), Ola (India), Grab (Singapore), Taxify (Estonia), Careem (Dubai) and 99 (Brazil) since 2015.
Mexico is the first place Didi will operate on its own outside China.
“Latin America, especially Mexico, is one of the fastest growing markets. Our company has nearly 90 million users across the nation, which makes it easy for our taxi-calling app to enter the market” said Pablo Mondragon, the company's senior operation manager based in Mexico City.
Uber was launched in Mexico in 2013 and had its share of teething troubles after run-ins with the local government. The US giant now operates in 45 cities across Mexico and controls 87% of cab-hailing market, according to Dalia Research.
Earlier, Uber had sold its China assets to Didi after losing the battle in Chinese market.