In December, there was a report from Reuters saying that Didi Chuxing, China’s ride-sharing service would be extending its business into Mexico. Now, the news agency reports that the company has publicly launched a website to recruit drivers and passengers in the city of Toluca, Mexico.
The reason behind choosing Toluca is it’s a “robust regional commercial and cultural” center, said a Didi spokesman, declining to comment on the timeline. However, a source familiar with the plan said that the app will reportedly go live later this month.
In order to persuade the drivers to sign up, Didi Chuxing says it won’t take any service charge until June 17. Besides, drivers will get bonuses for recruiting other drivers and passengers. After that point, drivers will have to pay a 20 percent of service charge, which is below the 25 percent commission charged by its biggest rival in Mexico, Uber.
According to Dalia Research, a Berlin-based consumer research firm, Uber held 87 percent of Mexico’s ride-sharing market in August 2017, while the rest 13 percent was shared by Cabify, Yaxi, and Easy. In Mexico, it will be the first time for Didi Chuxing to start service as an Uber rival. Although it will start with a car service, it may offer motorcycle, scooter sharing service in the future.