It’s the season of IPOs in China. After it was reported on Monday that Tencent Music is planning an IPO, now it’s the turn of ride-hailing firm Didi Chuxing to join the gang. Didi Chuxing is said to be in negotiations for an IPO that will value it at $70 billion to $80 billion. Last December, Didi reached a valuation of $50 billion after receiving financing of $4 billion from investors.
It is speculated that the IPO could take place in the second half of 2018, but there has been no confirmation on this. Didi Chuxing provided no comment on the matter.
Didi Chuxing also announced its expansion into Mexico, an Uber-dominant market. It debuted its service in Toluca on Monday and is looking to expand into other major Mexican cities over the coming months. Didi also has plans to launch services in Taiwan.
With its move into Mexico, Didi is taking Uber head-on. Recall that Didi bought Uber’s Chinese operations in 2016 and also acquired a minority stake in Uber. Through that deal, Uber became Didi’s biggest stakeholder, and this makes for an interesting situation as Didi pushes into Uber’s core markets like Mexico and Brazil. Didi purchased Brazilian ride-hailing company 99 earlier this year.
It is speculated that the IPO could take place in the second half of 2018
Didi has partnered with several cab service providers including Lyft as part of its growth and expansion efforts. Didi is also looking into the idea of developing its own fleet of Didi cars by teaming up with traditional automotive companies.
As the automotive market sees a transformation with the advent of electric and autonomous vehicles and as ride-hailing and ride-sharing services gain prominence, there is a need for carmakers and cab providers to evolve accordingly and bring forth smart mobility solutions. Didi is looking at partnerships with automakers to be a part of this trend and to make advancements in this area. Didi has some grand plans for the future, and it will be interesting to see how they unfold.