Chinese Uber rival resumes UK launch plans

Didi first began expanding its UK presence three years ago. Photo: Yang Kong/Bloomberg

Chinese rival Uber is laying the groundwork to enter the UK, three years after the company was forced to pause plans to launch products in British cities.

In recent months, Didi Global has acquired operating licenses in cities including Rotherham, Rochdale and Salford, which would allow it to offer rides in the UK.

The company has also secured planning permission for offices, saying it intends to offer private lettings directly from the building.

It is understood the company has no plans to offer rides in the UK any time soon, but remains largely operational in case it tries to revive plans in the future.

Didi's entry into the UK will be a new challenge for Uber, which has been forced give drivers working rights and pay hundreds of millions in VAT to HMRC following court decisions in recent years.

This Chinese rival was planning to start offering rides in the UK in 2021. At the time, MPs raised concerns about whether the service would transfer user location data to China.

However, Didi suspended launch plans and fired staff amid a cybersecurity investigation by the Chinese government, as first reported by The Telegraph .

The application was removed from Chinese application stores, and the company was prohibited from registering. new users.

Didi's move to list in New York also angered Beijing authorities, and the company's share price fell sharply amid a crackdown before the company delisted in 2022.

Didi has recently focused on markets in Asia, Australia and South Africa. America and is reportedly planning to list in Hong Kong this year.

However, Didi continues to apply for licenses so that it can get up and running quickly if it decides to expand. In 2022 it hired Matt Ratcliffe, a former executive at Addison Lee and taxi app Gett, and received planning permission to build offices in Rochdale and Bolton.

Planning documents say the company plans to use the offices «for the purpose of take over the administrative functions of a private app-based car rental operator.”

Demand for taxi apps in the UK is growing after operators overcome a driver shortage that led to price increases in 2022. Uber sales are up in the UK. to $6.2bn (£5bn) last year, up from $4.2bn the previous year, although employment and VAT changes mean additional costs for the company.

Last month, Indian rival Ola has closed its UK operations, saying it wants to focus on its home market.

Uber has a stake in Didi worth about $2.2 billion as a result of a deal that saw the US company exit China in 2016 .

< p>A Didi representative did not comment on the situation.