FIRST AIRED: March 19, 2018

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

×

Transcript

00:00:01
>> It's round two in the battle between Uber and China's leading ride-hailing app, Didi. Uber lost round one in China, pushed out of that market as Didi bought Uber's business in 2016. Uber got a nearly 18% stake in Didi in exchange, but that's not stopping them from slugging it out again, this time for the most important markets in Latin America.
00:00:20
Reuters correspondent Heather Somerville.>> Sources tell us that Didi is quietly working in a shared office space, a WeWork building in Mexico City, plotting its latest global expansion. We believe it's gonna happen sometime this year based on what sources tell us. For Didi, it's important because they have just raised $9.5 billion over the last year to fund a global expansion.
00:00:45
They have a $56 billion evaluation that they have to justify. For Uber, Mexico is a really strong market. It's one market where they're profitable, and they have 80% market share in Mexico. It really needs to be successful in Latin America to justify it's $72 billion valuation.>> But Didi has sharp elbows.
00:01:05
Sources say it's poaching Uber employees in Mexico. And it's thinking big with its deep pockets with ambitions for bike-sharing, scooters, and motorcycles in Mexico.>> One thing that Didi is gonna struggle with is the fact that no Chinese consumer company has really made it in Latin America. Part of this is because Mexico consumers, for instance, have much more of an affinity to US brands than Chinese brands.
00:01:30
And the Chinese way of doing business really doesn't resonate very well in Latin America. For instance, Didi was doing candidate interviews the week of Christmas in Mexico, something that bewildered candidates.>> Uber says it's ready to do what's needed to keep its dominance in Mexico including spending more to hook customers.
00:01:50
Its lead in Latin America is more important than ever as it recovers from a string of scandals that forced out co-founder Travis Kalanick as CEO last year. And it prepares to go public sometime in 2019.