Chinese e-taxi big Didi Chuxing has confirmed earlier reviews that it’s buying main Brazilian ride-hailing firm 99. Terms of the deal weren’t disclosed.
The deal comes simply weeks after Didi Chuxing introduced a hefty $4 billion increase, taking its complete funding to almost $20 billion. São Paulo-based 99, which was based in 2013, has raised round $240 million in funding with notable backers together with Qualcomm, SoftBank, and none aside from Didi Chuxing itself, which led its $100 million sequence C spherical final January.
Didi Chuxing was born of a merger between native rivals Didi Dache and Kuaidi Dache in 2015. Similar to Uber, Didi Chuxing affords smartphone-based automotive providers, similar to carpooling, taxis, and premium automobiles with drivers.
Though Didi Chuxing’s core ride-hailing service is proscribed to China, the corporate has been increasing via a focused funding technique that would assist stymie Uber’s traction in key markets. Back in August Didi invested in Careem, a ride-hailing service that’s in style in dozens of cities throughout the Middle East, Africa, and Asia, whereas it additionally invested in Taxify, which operates in Europe and Africa. Elsewhere, Didi has invested in Uber’s home U.S. rival Lyft, in India’s Ola, and Southeast Asia’s Grab. Oh, and Uber additionally elected to fold its native Chinese operations into Didi by way of a $30 billion transaction again in 2016.
Didi has made it clear that it plans to increase internationally, and it’s evident that it plans to take action via massive investments that will, as we’ve simply seen with 99, result in all-out acquisitions.
“Globalization is a prime strategic precedence for Didi,” famous Didi founder and CEO Cheng Wei. “With enhanced investments in AI capabilities and sensible transportation options, we are going to proceed to advance the transformation of worldwide transportation and automotive industries via diversified worldwide operations and partnerships.”
As a results of this buy, Wei prompt that his firm will look to speed up its development throughout Latin America.
“The success that founders and workforce of 99 have achieved in Brazil embody the very spirit of entrepreneurship and innovation within the LatAm area,” he mentioned. “Building on the deep belief between our two groups, this new degree of integration will deliver to the area extra handy, value-added mobility providers.”
This article sources info from VentureBeat