Didi Chuxing Technology Co. plans to bring its ride-hailing services to Western Europe, Bloomberg reported, citing “people familiar with the matter.”
The move could boost the firm’s valuation ahead of a possible initial public offering (IPO), the news outlet reported.
The Beijing-based company holds a dominant share of the ridesharing market in China, Bloomberg noted, but its momentum there has recently slowed, and it has been seeking new locales.
Didi has set up a team to focus on the European market and is hiring in the area, according to the report, and is considering the U.K., France and Germany for new possible locations. Didi could also offer food delivery and errand services if there is sufficient market demand.
PYMNTS recently reported that Didi has seen a surge in consumers using its group-buying delivery services, like group grocery orders. Didi was mulling a funding round for its group-buying unit, Bloomberg has reported.
Didi has already entered Eastern Europe, launching in Russia last summer where it competes with Yandex. In total, Didi operates in 13 countries outside of China, most of them in Latin America.
Didi’s move into foreign markets also comes as regulators in China have strengthened anti-monopoly restrictions on Big Tech. But Didi would still have to contend with tightening regulations in Europe as well, Boomberg noted. The U.K.’s supreme court ruled last week that its drivers are employees, not contract workers, and should be paid minimum wage and given vacation pay.
Didi did not respond to Bloomberg’s request for comment.
The ride-hailing firm recently raised $300 million for its self-driving unit, adding to the $500 million it raised last spring.
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