Tag Archives: Uber China

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.