According to Dalia Research reports from August of last year, Uber held 87 percent of Mexico's ride-hailing market share at the time. Easy, Cabify and Yaxi shared the other 13 percent. Though this is Didi's first foray outside of Asia, it has butted heads with Uber before. The US company previously tried to take on Didi on its home turf, losing around $2 billion in the process and abandoning that effort in 2016.

Didi, which has established an operations hub in Mexico City, will start with a car service, but sources told Reuters that the company may also offer scooter, motorcycle and bike-sharing services in the future.