Didi Chuxing has started operations in Mexico
Chinese ride-hailing giant Didi Chuxing is expanding its operations in other parts of Asia and Latin America. Notably, its expansion into Mexico could result in another battle with Uber. Didi Chuxing drove Uber out of China in a pitched battle, which proved costly for Uber.
Didi Chuxing launched its operations in the Mexican town of Toluca on April 23, and it plans to move to other Mexican cities later this year. Uber is currently the largest ride-hailing company in Mexico.
Didi Chuxing may go public this year
Like Uber, Didi Chuxing is backed by Japan’s SoftBank. According to a report by the Wall Street Journal, Didi Chuxing could beat Uber to an IPO and may go public as soon as fiscal 2018.
The report said that the Chinese company is hoping to garner a valuation of $70.0 billion–$80.0 billion, which could make it more valuable than Uber. The American ride-hailing company is planning to go public next year.
If Didi Chuxing goes public, the proceeds of the funds are likely to be used for additional global expansion. This growth could put the company in a position to fend off the ever-increasing competition in the ride-hailing space and to protect and improve its market share.
A number of other Chinese tech companies are either planning to go public or have recently done so. Baidu’s streaming unit, iQiyi (IQ), went public recently, while Tencent’s (TCEHY) music distribution arm, Tencent Music, could also go public.