Uber's main competitor in China Didi Chuxing earlier known as Didi Kuaidi raised $7 billion or more in a round of funding from investors as well as lenders.
The Beijing based, Chinese transportation network company raised $4.5 billion from investors which includes $1 billion which Apple invested in the company.
The rest, about $2.8 billion it received from lenders. A portion of the debt investment which is about $305 million was received from China Life Insurance.
According to sources, the valuation of the company is estimated to be $28 billion. Thought that may not match the $68 billion valuation of Uber, but it also must be kept in mind that Didi operates only in China and Uber has a global presence with operation in seventy or more countries.
However, the recent round of funding adds fuel to race between Uber and Didi. Reportedly Uber is seeking raise $2 billion in debt in addition to the $3.5 billion investment from sovereign wealth fund of Saudi Arabia.
In the Chinese market, Uber and Didi compete not only for riders but also to attract drivers.
Jean Liu, Didi's President said the company is subsidizing lesser number of rides which means it is losing less amount of money on those rides. However, drivers in countries like India and China mostly prefer companies that offer maximum supplemental cash in addition to their fares. Thus, when other companies begin subsidizing their rides it becomes more difficult to put a stop till the other competitors in the market go for it too.
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