Tag Archives: Didi Chuxing

Didi Chuxing invests in Taxify

Commentary

In an effort to dominate the global ride-sharing market, Didi Chuxing, the company that defeated Uber in China, has been expanding its reach and influence worldwide by investing in Uber’s rivals all across the globe. Last week, the company invested an undisclosed amount in Taxify, the Estonia-based ride-sharing startup that operates in 18 countries across Europe and Africa. Although Taxify has traditionally focused its operations in emerging markets, it is planning to expand to London later this year. This deal comes a week after Didi, along with SoftBank, invested $2 billion into Grab, Uber’s biggest competitor in Southeast Asia. Didi has also invested in other international ride-sharing companies including Lyft in the US, Ola in India, 99 in Latin America, and Careem in the Middle East.

Didi Chuxing raises $5.5 billion

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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.

Uber China to merge with Didi Chuxing

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After suffering huge losses in China, Uber China is finally surrendering its operations to its homegrown rival, Didi Chuxing. The deal, which will create a merged company worth around $35 billion, will end one of the ride-hailing industry’s biggest rivalries. According to sources, the terms of the deal includes Didi acquiring Uber’s brand, business and data in China, whilst Uber investors will reportedly hold a 20% stake of the combined company. Didi will also invest $1 billion in Uber’s global company as part of the deal. According to analysts, this deal allows Uber to focus on other regions that it operates in, new product development such as UberEats and a possible IPO down the track.

Poly Group invests $400 million in Didi Chuxing 

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Competition in the ride-hailing industry heats up as Didi Chuxing, Uber’s main rival in China, raised $400 million from Poly Group. Poly Group is one of China’s state-owned trading and real-estate conglomerates. This latest fundraising leaves Didi with a valuation of around $27.6 billion. Didi Chuxing, formerly known as Didi Kuaidi, dominates the Chinese ride-hailing market at more than 14 million rides per day. In addition to the equity fundraising, China Merchants Bank recently led a syndicated loan of $2.5 billion and China Life Insurance lent $300 million in long-term debt to Didi Chuxing. The company now has more than $10 billion in disposable funds which it intends to use to ramp up its competition with Uber.