China's Didi targets Taiwan expansion with franchising model
Didi Chuxing, the ride-hailing giant that vanquished Uber Technologies Inc. in China, is turning to franchising in Taiwan as it expands its business beyond the mainland.
Didi plans to only operate as a taxi hailing platform in Taiwan and is seeking to work with existing drivers that it’s recruiting through its Facebook page. The recruitment is being done by LEDI Technology Co., which is the authorized franchisee in Taiwan, the company said in a statement.
While San Francisco-based Uber has taken its business around the world, Didi has been more cautious as it focused on shoring up its grip on ride-sharing in China. The Beijing-based company has a $50 billion valuation and raised more than $5.5 billion earlier this year, giving it cash to compete aggressively in foreign markets as it also builds capabilities in artificial intelligence and driverless cars.
Didi has only slowly expanded beyond its home market. In Hong Kong it offers some specialist services, such as sedans taking passengers across the border to Shenzhen.
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