China’s Didi Kuaidi increases funds to battle Uber expansion image

While the US-based Uber was one of the initiators of the car-sharing business sectors, its position as a dominant world player is deeply challenged in China, where a local mobile car-hailing service owns supremacy.

China’s car ride services are dominated by local hailing company Didi Kuaidi, which recently announced it had secured $2 billion in a fundraising round as the rivalry with America’s Uber becomes more intense at home. Didi Kuaidi, with the biggest market share of car-hailing apps in China, said the fundraising round allowed it to increase its cash reserves to $3.5 billion. It also declared in a statement on Wednesday the most recent funding process might still yield another “few hundred million” thanks to massive interest from global investors. According to sources, the recent round of funding has lifted the company’s value to as much as $15 billion and will allow it to further battle Uber, with the San Francisco-based company recently announcing it was investing at least one billion dollars in China, the world’s largest auto market and the planet’s second biggest economy.

“There are a few things we’re expanding into right now to establish our leading position in the full service transportation platform worldwide,” commented Didi Kuaidi President Jean Liu for Reuters, referring to bus and chauffeur services. The top executive added the company would remain focused mainly on the internal transportation market. Didi and Kuaidi were rivaling companies before merging in a $6 billion deal in February, as they were backed by Tencent Holdings Ltd and Alibaba Group Holding Ltd respectively.

Via Reuters