Chinese ride-sharing company Didi Chuxing Technology Co Ltd, which owns the mainland operations of Uber Technologies Inc., will begin offering its service this month in Australia.

The scheduled June 25 launch in Melbourne sets Didi up for a showdown with the U.S. rival it bought out in China in exchange for a stake. Didi started expanding outside Asia in Mexico earlier this year.

"Australia has diversified mobility needs, a business-friendly environment and an inclusive culture," Didi, which is backed by investors including SoftBank Group Corp and Apple, said in a statement.

"Didi wishes to contribute to the growth of Australia as a long-term investor and business partner by offering affordable, reliable and convenient mobility options and income-generating opportunities," it added.

Melbourne is typically used by foreign companies as an entry point, since it has cheaper real estate than larger Sydney.

Didi said that it would "shape product offerings and user experience in Australia based on the feedback from drivers and passengers in Melbourne and Geelong", a satellite city 75 kilometres (46 miles) away.