China's ride-hailing company DiDi is launching in the country of Australia starting with Melbourne city. The company started trial for about a month in the city of Geelong and it will start its Melbourne operations from June 25th. To kick off its operation in Melbourne, company will be offering discounts and promotions and a series of welcome packages to both drivers and riders, essentially the same strategy of incentivizing both sides of the marketplace to build liquidity.
With Australia launch company Didi will be completing directly with Uber and Ola. Prior to this, Didi had ventured in Taiwan, Mexico and Brazil as it pushes outside China for global expansion. The ride hailing company has taken both organic and inorganic routes for its global expansion as it used a franchise based model to venture into Taiwan and it entered Brazil by acquiring Uber rival 99 by paying 1 billion dollars. It is also planning to enter Japan through a Softbank joint venture.
“In 2018, Didi will continue to cultivate markets in Latin America, Australia and Japan. We are confident a combination of world-class transportation AI technology and deep local expertise will bring a better experience to overseas markets,” the company said in a statement.
Currently Didi was marred in controversy as its 'Hitch' service , an inter-city carpooling service, was dicontinued temporarily following the murder of a passenger at the hands of a driver.
This competition will further create a confusion between the dynamics of taxi hailing companies as Didi had acquired Uber's China operations and it had invested in Ola in the year 2015.