China’s Didi recruits ride-hailing drivers in Hong Kong push

[HONG KONG] China’s Didi Global is quietly recruiting new drivers in Hong Kong as it looks to grow outside of mainland China.

The move sets the Chinese ride-hailing pioneer up for close competition with Uber Technologies in a financial hub where regulations governing the sector are still in flux, providing a window for rivals to win market share. Didi has been offering limited taxi services in Hong Kong for some time, but lacks a ride-share option.

An advertisement viewed by Bloomberg News invites prospective ride-share drivers to scan a QR code and download an app called KayGo Driver.

KayGo is recruiting drivers for Didi, according to a person familiar with the matter. KayGo’s drivers will gradually start providing their service to Didi users in Hong Kong, the person said.

A Google Play store listing for KayGo features a black and white cartoon gorilla. The description says the app is an “order-taking platform specially created for drivers.”

The listing includes a link to a KayGo website for drivers, which in turn contains links to Didi’s own site. The app’s developer is listed as Kaygo Ltd., carrying a Singapore address but a Hong Kong phone number. The app, updated last week, has been downloaded more than 100 times from the Google Play store.

Didi did not respond to a request for comment. Calls to the phone number listed for KayGo were not answered. The company did not immediately respond to emailed requests for comment.

Didi, known as China’s answer to Uber, has been expanding internationally in recent years. It aims to list on the Hong Kong stock exchange, though the timeline remains unclear.

Didi is among a group of Chinese tech companies including Meituan that are chasing growth overseas as they are faced with prolonged economic uncertainties at home.

Hong Kong last year unveiled long-anticipated but vague plans to regulate ride-hailing services including Uber in a city infamous for the low quality of its local taxi services. Officials have said more details on a proposed plan should be released this year.

Uber launched in Hong Kong in 2014 and seven years later acquired the HKTaxi app, a popular platform used to hire cabs. Uber also offers Uber Taxi, which allows taxi bookings through the firm’s own app.

Hong Kong taxi drivers in 2023 threatened to go on strike to protest the government’s unwillingness to regulate ride-hailing services. Uber’s presence has made it a target of Hong Kong’s taxi industry, which says Uber deprives it of revenue each day and creates unfair competition.

Uber has said it welcomes the government’s plan to regulate ride-hailing platforms. BLOOMBERG