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Chinese hybrid driver Didi Chuxing wants to launch in Europe

2021-02-24T19:10:40.522Z


The first Chinese VTC application is planning its deployment in several European countries including France, the United Kingdom and Germany.


Competition is intensifying a little more in Europe on the VTC market.

Chinese heavyweight Didi Chuxing plans to deploy its services there, including in the United Kingdom, Germany and France by the first half of 2021, according to the Bloomberg site.

Read also: Will California bring down the uberization of the economy?

The main Chinese vehicle reservation application with drivers has already set up a team dedicated to this new market and will begin to recruit in the countries concerned, adds the American media.

The VTC sector is not the only one coveted by Didi Chuxing who also plans to offer home meal delivery and shopping offers, Bloomberg added.

This is not the first time that Didi Chuxing has tried to break into Europe.

In 2017, the Chinese firm unveiled

“a strategic partnership”

with Estonian Taxify.

Didi

"will invest in Taxify to support its growth and its innovations through the diversity of its markets"

, assured a press release about this first merger with a European player.

Didi Chuxing is the result of the merger in 2015 of two Chinese transport applications, Didi Dache and Kuaidi Dache.

They were both backed by two Chinese web giants: the Tencent and Alibaba groups.

In 2017, the app raised more than $ 5 billion, making it Asia's top-valued start-up.

Uber in trouble

Gradually, it expanded its activities and is now present in 13 countries, representing serious competition for Uber.

The American also lost a first battle in China where he agreed in 2016 to sell his activities to his rival.

In the United States too, Didi Chuxing hunts on Uber's land and in 2015 joined forces with his main rival, the American Lyft.

He also signed a partnership with the Indian Ola the same year and two years later announced an investment of 100 million dollars in the Brazilian service of VTC "99".

Read also: Bus, trains, subways: why Uber is setting out to conquer your public transport

But by settling in Europe, Didi Chuxing will have to adapt to an increasingly regulated labor law for the employees of these companies.

Since February 19, in the United Kingdom, Uber drivers must be considered as salaried "workers", calling into question the group's economic model, which has always made its drivers independent.

Elsewhere in Europe, States are more restrictive of VTC platforms, in particular on data protection and the taxes imposed on them.

Source: lefigaro

All business articles on 2021-02-24

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