Didi is undercutting Uber on price and dominating the market share in Mexico, according to new data.
While Uber won over parts of Latin America, in Mexico, Didi has captured 56% of the market, according to Measurable AI.
With over 600,000 drivers serving 100-plus cities in the country, Brazil is Uber’s biggest market outside the US with 65% of the market. Its main rival, 99 — owned by Chinese ride-hailing company Didi Chuxing — has an estimated 750,000 active drivers in Brazil and a 35% market share. Both companies have a combined 28 million Brazilian active users. Since 2020, Uber has taken 7% Brazilian market share from Didi.
The average customer in Mexico books 2.2 Uber rides and 2.5 Didi rides a week.
The market gains Uber made in Brazil was lost in Mexico, where a price war is waging. The average Didi trip in Mexico costs 65 pesos compared to 94 pesos on an Uber. In Brazil, the average 99 user pays 14 reales for a trip and 17 reales for an Uber trip.
The biggest cities are where the battles are being waged. Roughly 24% of Uber rides and 18% of Didi rides in Mexico originate from Mexico City. São Paulo, New York, Los Angeles, Chicago, and London account for 22% of Uber’s entire bookings worldwide.
The prices of riding with either platform in 2022 increased significantly from a year ago. This was particularly the case for Uber Black and 99 Comfort in Brazil where prices rose by 19% and 30% respectively for longer commutes (around nine miles). This could largely be attributable to the rising oil prices and shortage of cars.
Latin America is a key growth area for ride-hailing companies. The growing urban population, poor urban planning, and limited mobility are the major drivers underpinning the growth of the market. The population in Latin America will exceed 660 million, with 82% living in cities.
Meanwhile, here comes another competitor better known in the US, where Uber is based.
Lyft has announced plans to expand its services into Mexico, where about 100 software developers have been working since April 2020. The company’s overall goal is to offer viable alternatives such as vehicle, bicycle, and scooter-sharing services within cities.
“We are pleased to announce that Lyft is expanding our engineering team in Mexico, with the goal of building a Technology Hub for all of Latin America,” said Brian Salomaki, site lead for Lyft in Mexico.
Lyft operates in 644 cities throughout the United States and 12 in Canada.
With information from Derived from Data News
