Chinese taxi hailing app Didi might have forced Uber to exit from China and brought about the end of one of the most fiercely contested turf wars in recent history, but it seems that it was not the end. According to the latest reports, Didi is now gearing up to compete with Uber in new markets and has made investments to that effect. The new turf war between Uber and Didi is all set to be played out in Europe and Africa.
Uber in trouble?
Didi has invested in the taxi hailing start up Taxify that operated in Europe and Africa and those are markets in which Uber has traditionally been a big player.
However, it might be a bit of a stretch to say that the San Francisco based start up, that is valued at $68 billion will be in deep trouble due to Didi's entry right away. After all, Uber has been in those markets for a considerable period of time and are aware of the lay of the land, as it were. However, there is no doubt that Taxify will be a new entity that will challenge Uber's hegemony in Europe and Africa.
Additionally, Taxify is also going to launch in London, which has also traditionally been one of Uber's most lucrative markets since the US based start up launched in the United Kingdom. The amount that Didi invested in Taxify is yet unknown but according to a report on TechCrunch, it is an 'eight-figure U.S.
dollar sum'.
Who are Taxify?
Americans might be wondering what is all the fuss about Taxify after all and they might be right in thinking that, considering the disparity in the size of their operations when compared to Uber. However, Didi's investment in the company should be a cause for concern for Uber. Taxify is based in Estonia and its operations are sprawled across 18 countries, most of which belong to the emerging markets category.
However, its decision to launch in London is an indication that it is looking to rival Uber in mature markets.
At this point in time, Taxify has a user base of 2.5 million and is involved in the same line of business as Uber, which is a matter of concern for Uber. In addition to that, Didi's investment in the company might eventually lead to knowledge sharing that might put Taxify in a position to challenge Uber's dominance in Europe and Africa.
The American start up is currently going through a transition of sorts following the range of controversies that it went through and the eventual ouster of charismatic founder-CEO Travis Kalanick. Didi's decision to back Taxify is a clear indication that the company wants to fight Uber all over the world.
