Didi Chuxing raises $5.5 billion

Commentary

After riding high on its acquisition of Uber’s Chinese business last year, China’s ride-hailing giant Didi Chuxing has recently raised a whopping $5.5 billion from Silver Lake Partners, China Merchants Bank, Bank of Communications and SoftBank at a rumoured valuation of over $50 billion. According to sources, the cash infusion will be used for global expansion and to further the company’s pursuit of autonomous driving technology. Driverless cars present a great opportunity for ride-hailing companies by its potential to reduce costs. By taking drivers out of the equation and making cars run 24/7, ride-hailing companies can raise their profits ten-fold as well as stay relevant in an ever-changing environment.

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