Uber’s Chinese competitor is now laying the foundations for entry into the UK. This comes three years after was forced to stop plans to launch services in British cities.
Didi Global acquired operating licenses in Rotherham and Rochdale in the last few months, allowing it to provide rides in Britain.
The company also obtained planning permission for office space, as it plans to operate private hire services from the building.
The company does not intend to offer rides in Britain in the near future, but it is running a minimal operation in case they decide to restart their plans.
Didi’s entry into the UK would be a challenge to Uber. Uber has been forced by recent court rulings to give workers’ rights for drivers and pay HMRC hundreds of millions of VAT.
The Chinese competitor has plans to offer rides in the UK by 2021. MPs had raised concerns at the time about whether or not the service would send users’ location data to China .
Didi, however, suspended its plans for launching and laid off employees amid a cyber-security probe by the Chinese Government.
The company has been banned from adding new users and its app was removed from Chinese apps stores.
Didi’s decision to list in New York angered Beijing officials and the share price of the company plummeted during the crackdown. The company will delist in 2022.
Didi’s recent focus has been on Asia, Australasia, and South America. It is also rumored to be planning a Hong Kong listing this year.
Didi, however, has applied for licenses in such a way as to allow it to start quickly operating should it decide to expand. It hired Matt Ratcliffe in 2022, a former executive of Addison Lee, a taxi app Gett and has obtained planning permission for offices to be located in Rochdale, Bolton and Bolton.
The company’s planning documents state that the company intends to use the office “to undertake the administrative functions of a private hire vehicle app-based operator”.
The demand for taxi apps in Britain is increasing after operators have overcome a shortage of drivers that led to a price increase in 2022. Uber’s UK revenue grew from $4.2bn to $6.2bn last year. However, changes in employment and VAT have resulted in additional costs for the company.
Last month, Indian competitor Ola closed its UK operations. It said it wanted to focus on the domestic market.
Uber owns a stake of Didi valued at $2.2bn, as a result a deal that was struck in 2016 when the US firm pulled out of China.
A Didi spokesman did not comment.
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