China has its own equivalent of Uber, a popular car-hailing app in the United States. Didi Kuaidi is one of China’s biggest taxi-hailing apps. They have expanded their services in order to directly compete with Uber China in the ride-hailing market. Here’s a look at why Didi Kuaidi is tough competition and may continue dominating in China:
Raising More than $1.5 Billion in Funding
Didi Kuaidi Joint Co. is close to raising more than $1.5 billion. Some of their investors for this funding period include Alibaba Group Holding Ltd. and Tencent Holdings Ltd. The company has received funding from a mixture of new and old investors. Funding is expected to close at the end of this month.
Many global startups have had trouble raising money this year because of the slowing global economy. Even startups in Silicon Valley are feeling it. Didi Kuaidi Joint Co. is one of the few that isn’t experiencing difficulty gathering funding to grow its business.
Didi Kuaidi is Worth $25 Billion
In February 2015, as noted by the Wall Street Journal, Didi Kuaidi was valued at $6 billion. Currently, the company is valued at approximately $25 billion, partially thanks to the abundance of investments. Overall, private funding in the technology sector in China has been declining. Only companies that are dominating in their market receive funding. Other tech startups are struggling to acquire new funding.
Didi Kuaidi is Uber China’s Biggest Competitor
Didi Kuaidi’s biggest competitor in China is Uber China. China’s largest search engine, Baidu Inc., has chosen to invest in Uber China. The ride-sharing market is quickly growing in China, so there will be strong competition between Didi Kuaidi and Uber China to grab the largest share.
Last year, Uber China gathered $1.2 billion in funding and was valued at over $8 billion. In contrast, Didi Kuaidi raised $3 billion in September 2015 with a valuation of $16 billion. It will be interesting to watch how the battle between Didi Kuaidi and Uber China will play out this year. So far, it looks like Didi Kuaidi will take the top spot as car-hailing company in China.
Conclusion
Uber China’s toughest competition in China is Didi Kuaidi, a company that has raised more in funding and dominates China’s taxi hailing market. Didi Kuaidi also currently has a larger share of the private car hailing market than Uber China. Thanks to the great sum of funding its received, Didi Kuadi is expected to grow more this year.
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