Didi Chuxing launches operations in Taiwan

Didi Chuxing, China’s leading ride-hailing service, has expanded beyond the mainland and Hong Kong for the first time, launching operations in Taiwan, TechInAsia reported on Friday.

In mid-December, Didi announced that it was exploring potential expansion in Taiwan, collaborating with local franchise partner LEDI Technology to “conduct market research and explore community partnerships,” according to Reuters.

Under the sway of a strong taxi lobby, Taiwanese regulations prohibit ride-hailing companies from operating as they do in most other markets, by employing unlicensed individual drivers. Instead, the transportation ministry requires that services like Didi partner with existing licensed taxi or limo companies.

Uber, Didi’s stiffest ride-hailing competition, has had a fraught relationship with the Taiwanese transportation authorities, incurring steep fines and even freezing its services for several months last year. The penalties Taiwan imposes on unlicensed ride-sharing — among the harshest in the world — increased to more than $800,000 last year, Reuters reported. In early 2017 the transportation ministry started to dole out rewards to passengers for reporting unlicensed drivers, who, if caught, face a $3,100 fine and a four-month license suspension.

In compliance with local regulations, Didi has recruited almost 2,000 licensed local drivers, according to Xinhua. Already boasting 450 million users on the mainland, Didi will offer its new Taiwanese customer base two platforms — a standard taxi service and a carpooling service. Payment for both services will initially be limited to cash, with credit card and mobile payment options gradually phased in over time. To ensure convenient use between Taiwan and the mainland, Didi has designed a cross-compatible app, LEDI Technology CEO Wang Ci Yong said.

Didi has invested in a slew of ride-sharing companies across Asia, the Americas, and the Middle East. The company’s foray into the Taiwanese market may prefigure expansion elsewhere as Didi seeks to escalate its rivalry with Uber.

[Image via The Verge]

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