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Didi Chuxing expands its business in Taiwan with franchise model

Dec 19, 2017, 11:30 am

Didi Chuxing, the ridesharing company of China is to step into franchising in Taiwan to expand its business beyond the mainland. The plan is to operate as a taxi hailing platform in the state and will be working with existing drivers, who are recruited via Facebook.

As per given statement of the company, the recruitment is being done by the LEDI Technology Co., an authorized franchisee in Taiwan.

Among the ride-sharing leaders of the industry, Uber of San Francisco operates globally. But Beijing-based Didi has been prioritizing strengthening its base at home. With a $50 billion valuation, it has raised over $5.5 billion this year, which it invested in its developmental works on artificial intelligence and driverless cars.

In the announcement today, Didi said that LEDI “is conducting market research and exploring extensive community partnerships in Taiwan,” without any definitive timeframe this far. Didi is, although, yet to apply for a license to do business in Taiwan.

It’s observed by experts that the moves made by the company are quite in contrast with the same of Uber. The latter stopped operating in Taiwan in February due to opposition from local operators and the government.

Taiwanese lawmakers and the taxi industry are quite successful in getting startups to abide by the local rules. Illegal transport of passengers may lead to a fine of NT$25 million ($834,000), which is one of the highest penalties faced by Uber in any country. The company gave a fine of about NT$1.1 billion in last January.

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