Chinese ride-hailing giant Didi Chuxing Technology plans to make its debut in Western Europe, people familiar with the matter said, as the company seeks new growth markets ahead of a long-awaited initial public offering, Bloomberg reports.
Beijing-based Didi is considering rolling out ride-sharing services in markets that could include the U.K, France and Germany by the first half of this year, according to two people briefed on the plan. The company has already set up a team dedicated to the European market and is hiring locally, another person said.
Shares in rival Uber Technologies slumped by 2.7 percent in premarket trading Wednesday, while Lyft Inc. slipped by 0.7 percent.Didi is turning to new arenas as its momentum starts to slow in China, where it has a dominant market share after ousting Uber Technologies Inc. in 2016.
The SoftBank Group Corp.-backed company now operates in 13 countries outside its home base, mostly in Latin America. In August, it began offering car-hailing services in Russia, marking its first direct foray into Europe, and it’s already an investor in Estonia-based Bolt Technology OU, the continent’s main rival to Uber. Didi would also be competing against apps like Gett Inc, Ola and BlaBlaCar.
In Europe, Didi would face a fast-changing regulatory landscape for tech companies and the gig economy. Last week the U.K.’s highest court ruled Uber must treat its drivers as “workers,” entitling them to vacation pay, rest breaks and minimum wage while using the app, a judgment which could have wider repercussions. European countries are also working on taxes aimed at tech platforms, and the continent imposes strict data privacy rules in the shape of the General Data Protection Regulation.
In August last year, Didi Chuxing, launched a car-hailing service in Russia.
