China’s DiDi Chuxing set to take on Uber and Bolt in South Africa

China’s ride-hailing company, DiDi Chuxing, has launched in South Africa, signalling the company’s first entry into Africa. This new expansion follows the successful pilot launch of its operation in Gqeberha, South Africa, on March 1

DiDi now offers ride hailing services in more than 400 cities in China and 14 countries outside of China, including Australia, New Zealand, Japan, Brazil, Mexico, Chile, Colombia, Peru, Costa Rica, Panama, Russia, the Dominican Republic, and Argentina. DiDi has also announced plans to launch its service in Ecuador in April.

Founded as DiDi Dache by Cheng Wei in 2012 as a a taxi-hailing app, Didi Chuxing as it is now known, now has multiple services including including Taxi, Express, Premier, Luxe, Bus, Designated Driving, Enterprise Solutions, Bike Sharing, E-bike Sharing, Car Rental and sharing, and food delivery.

In less than a month, more than 2,000 drivers in the city are already connected to DiDi’s app, helping more than 20,000 local residents who have already signed up with DiDi to get where they are going safely and affordably.

“South Africa has been hit particularly hard by this pandemic that has upended all of our lives – so as this beautiful country looks to recover and rebuild, we would like to do our part, to be a partner in building back better by providing better earning opportunities for drivers as well as safer and more affordable mobility options for everyone,” said Stephen Zhu, Senior Vice President and Head of DiDi’s International Business.

DiDi will have to contend with incumbents Uber and Bolt in the South African market. Uber launched in South Africa in 2013 while Bolt launched in 2016 and they have rapidly introduced other services to solidify thier presence in the country. For instance, Uber launched its food delivery service, Uber Eats in 2016 while Bolt Food launched its service in 2020.

Backed by Softbank, DiDi has deep pockets having raised a lot of funds in recent past. In 2017, the company raised $4 billion for international expansion and it completed a fundraising round of over $500 million for its autonomous driving subsidiary that was led by SoftBank Group’s Vision Fund 2.

Related to access to funds, DiDi Chuxing is eyeing the US for its initial public offering, targeting at least a $100 billion valuation to capitalize on the post-pandemic rebound. If the US listing is successful, the company is also open to a second listing in Hong Kong