Didi Chuxing expands in Sydney to step up growth overseas as coronavirus crisis slows down China business
- The ride-hailing giant has established operations in Australia, Brazil, Chile, Colombia, Japan and Mexico
- It also has stakes in other providers: Grab and Ola in Asia, Lyft in the US, Taxify in Europe and Careem in the Middle East
Didi Chuxing, China’s largest ride-hailing service provider, is stepping up growth initiatives overseas with the launch of new operations in Sydney, as the coronavirus outbreak slows down expansion in its home market.
Beijing-based Didi will start operations in Australia’s most populous city and largest ride-hailing market from March 16, according to the company. Didi, which entered the country in May 2018, currently operates in seven cities across four states.
“Didi’s driver-partners have served over 2 million riders across Australia,” said Lyn Ma, general manager of Didi Australia in a statement on Monday. “Introducing our services to the global economic and cultural hub of Sydney is a major milestone for our young team here.”
The company’s continued international expansion comes amid its industry’s difficulties in China, the world’s biggest ride-hailing market, where the coronavirus outbreak has led to a slowdown in demand.
“The coronavirus outbreak will have a negative impact on China’s ride-hailing industry,” said Sun Naiyue, an analyst at research firm Analysys, who covers China’s broader mobility sector. “Because of the home quarantine orders and suspension of work, overall domestic demand is expected to shrink in the first quarter.”