Monday 22 August 2016 2:54 pm

Uber's former rival Didi launches car rental service

Not satisfied with winning the ride-sharing wars with Uber after merging in China, Didi is now expanding into other car services.

It's launching an online car rental service in the country to capitalise on the billions of domestic tourist trips made throughout the country, which is expected to grow to 5.8bn by 2020.

Read more: Uber is gearing up to launch UberEats in 12 more cities across Europe

Didi will partner with existing offline car rental and leasing firms to offer users easier access to choosing and booking a car within a two hour time frame. Staff working for Didi will deliver the cars to renters.

The service is already being tested in Shanghai and will be rolled out to other cities by the start of next year.

Read more: Uber's driverless cars hitting roads within weeks after $300m Volvo tie-up

The Apple-backed startup merged with Uber's China business just weeks ago, with Uber taking a stake in the business, bringing to an end an expensive rivalry between the two multi-billion dollar startups.