Uber China rival raising $1 billion to keep dominating the market image

The biggest ride-hailing company in China is to receive 1 billion dollars in additional funding to keep Uber on the second place.

One year ago, the biggest two Chinese taxi-hailing services have made an alliance, turning into the giant Didi Kuaidi company, a merger that gives little chances to Uber on the Chinese market. Even if its dominance is overwhelming, Didi Kuaidi will reportedly further secure it by an additional capital infusion. According to the Wall Street Journal and Bloomberg, the firm that claims to have over 80 percent of the private car hailing market in China has received at least $1 billion in commitments for a new fundraising round. A person familiar with the matter said the move was not yet closed, but once it is concluded, Uber’s rival will value more than 20 billion dollars.

The round is oversubscribed, and the company is still negotiating terms with investors, the person said. The fight over the Chinese market made Uber raise around 1.2 billion dollars last year, with the search giant Baidu as the main investor, while Didi Kuaidi managed to gather in 2015 some extra 3 billion dollars.

Uber is trying hard to profit from the huge potential found on the Asian markets, thus loosing 1.7 billion dollars in the first three quarters of 2015 because of these expansions goals, as Bloomberg Businessweek reported in January. Uber announced last week that the traffic jams in Thailand’s capital Bangkok were a good opportunity to start its first bike taxi service.

Via Bloomberg