In Mexico, where Uber faces its first competitor, Didi, which has gained about 30% market share in the cities where it has been operating since the local launch last year. Didi also has a significant presence in Brazil, where it bought local private transport company 99 last year and operates under that brand.
In Mexico, however, investors see a fundamental test of Didi’s ability to build an international operation from scratch and Uber’s ability to defend his territory, said James Cordwell, an analyst with Atlantic Equities in London. “What happens in Mexico has global significance.” The company’s market share has risen to over 30% in less than a month, causing Uber to respond with a generous promotion for drivers, ultimately the customer wins.
Source: reuters
