A rideshare war has broken out in Perth with a new player hitting the streets.

The new kid on the block, DiDi, is promising cheaper fares than Uber and Ola and better rates for drivers.

The Chinese juggernaut will cover the entire Perth urban area stretching from Two Rocks to Mandurah and as far east as Mundaring.

DiDi currently has 550 million users worldwide, operating in Asia, South America and Australia.

"We are really excited to bring our low fare ride share service to Perth,” spokesman Dan Jordan told 7NEWS.

“We have a lot to offer the market and it's going to benefit Perth's riders and drivers."

DiDi is now live in Perth and promising competitive fares.

"We offer a service that is about 10 percent more affordable than other rideshare providers," Mr Jordan said.

And it's not just a price war for passengers, but drivers too.

DiDi takes an 11 percent service fee on all trips, around a third of what ride sharing giant Uber takes.