Uber stock slips as Chinese rival reportedly plans to enter the Western European market

Man getting into car ride share uber lyftNisian Hughes/Getty Images
  • Uber shares fell Wednesday with a report that rival Didi is preparing to operate in Europe.
  • Didi is considering ride-hailing services in the UK, France and Germany, The Wall Street Journal reported.  
  • Didi is making expansion plans ahead of a possible IPO for the Beijing-based company.  
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Uber shares pulled back as much as 4% on Wednesday following a report that Didi Chuxing Technology Co., a China-based rival, is considering rolling out its ride-sharing services in Western Europe.

Didi is working on a plan to begin operating in the UK, France and Germany by the first half of 2021, according to Bloomberg, citing unnamed sources.

Shares of Uber fell as much as 4% to an intraday low of $US53.66 ($68), before it trimmed the loss to 2.6%. The shares this year have gained about 7% and have climbed 58% over the past 12 months.

Didi created a team dedicated to the European market and is hiring locally, the report said, adding that Didi was also looking at offering food delivery and errands services. Expansion into Western Europe could increase Didi’s value ahead of a potential IPO.

The report detailing the Beijing-based company’s ambitions arrived after the U.K.’s highest court ruled last week that Uber drivers are entitled to workers’ benefits such as vacation pay and minimum wage while they are driving for the company. The dispute will head back to a tribunal that will determine how much the drivers who brought the case will be awarded.

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