Didi Chuxing is due to debut its home delivery food service after rumors point to the arrival of the Chinese company in Mexico.
The relationship between Didi Chuxing and Uber can be complicated to understand. Private transport services followed the example of the slogan "Unity is Strength" to create a transport giant in China. However, in the rest of the world, they are still competitors and Didi's alleged plans to reach Mexico could be the beginning of problems for Uber in one of its most important and profitable markets.
In addition to the expansion plans, Didi Chuxing announced that it has started its own food service at home. The pilot program began in a city in southern China on April 1, but the company stressed that it intends to expand the service progressively. Thus, Didi actively enters an unknown sector and opens a new field of competence, this time through UberEats.
Luo Wen, the man in charge of Didi's new service, announced that the company intends to implement it as soon as possible in other parts of the world. The Chinese platform has 450 million users in more than 1,000 cities, an audience with which you can begin to step on the heels of Uber's home delivery service. On the other hand, entering the new business area can be a big ticket in Mexico.
Since the end of 2017, the rumors of the arrival of the Chinese company to Mexico have grown and, according to the first reports, Didi Chuxing would offer, in addition to private trips, other services such as motorcycles, bicycles or scooters. According to the latest information, the "food at home" option could also be available.
The news of Didi Chuxing is bad news for Uber although, according to estimates, the entry of the competitor in Mexico could still take a while. At the beginning of the year, Didi acquired the Brazilian company of shared travel company 99, with which it could start its operations in the country. One of the executives of 99, Matheus Moraes, said they are starting to look at Mexico with the aim of starting operations, a strategy that could help Didi to test the ground before finally arriving.
Didi has not given details about its plans in Mexico nor has he specified an arrival date, but the word has grown more and more in recent months. Job offers and reports have given clues about the entry into Latin America of one of the most valued services around the world. Mexico would be the gateway to the continent, although there are still many pending issues that the company should clarify.
For Uber, Mexico is one of its most important markets and, so far, the platform has managed to maintain its presence in front of other companies such as Cabify or MyTaxi. However, the company's problems have also reached the country and the hack of 2016 would have affected Mexican customers, as well as the challenges to maintain security.
The Chinese advance
Didi Chuxing is one of the best-rated companies at the moment and has a good portfolio of clients. The home delivery service will have good support from the company, although it will also have to face tough competition.
Just the same day that Didi announced its plans, Meituan Dianping, the Chinese food delivery startup in the Asian giant, confirmed the acquisition of Mobike. The bike-sharing company without a dock station will remain as an independent entity of Meituan Dianping, but will have the backing of one of the big Chinese companies.
Mobike began operations earlier this year in Mexico, where it started offering its services in the Miguel Hidalgo delegation of the Mexican capital. As Didi Chuxing bought the Brazilian 99 within a possible strategy to test the terrain in the country, Meituan Dianping could be carrying out the same plan.
By partnering with Mobike, China has a presence in Mexico that can help study the Mexican market and assess whether it is worth taking the service to the country. This could be the beginning of a greater integration of services from the Asian giant in a place where American companies such as Uber have led up to now the leadership.
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