Didi Chuxing, the ride-sharing giant of China and sure essentially the most helpful startup within the global, simply purchased a controlling stake in 99, a leading trip-sharing app in Brazil.
in keeping with Reuters (mentioning a repot in Valor Economico, a leading financial newspaper in Brazil), the deal values 99 at $1 billion. Didi already had a minority stake within the startup, having invested $100 million over a 12 months ago.
“Globalization is a best strategic precedence for Didi.”
“Globalization is a top strategic precedence for Didi,” Cheng Wei, founder and CEO of Didi, mentioned in an announcement. “With enhanced investments in AI capabilities and good transportation answers, we can proceed to increase the transformation of worldwide transportation and automobile industries through different international operations and partnerships.”
the inside track follows the assertion that Didi plans to extend into Mexico in 2018, intensifying its global rivalry with Uber. Softbank just lately succeeded in its bid to acquire a big chew of Uber at the discounted valuation of $48 billion, which most likely positions Didi (estimated worth $FIFTY SIX billion) as the arena ’s most worthy startup.
Didi has had a very interesting couple years, to say the least. the corporate first crossed many peoples ’ radars when Apple introduced it had invested a watch-popping $1 billion within the ride-hail service. at the time, Didi was once locked in an excessive pageant with Uber for China ’s rapidly rising ride-hail market.
Eventually, the combat grew too expensive for Uber, which was once reportedly spending $1 billion a year in China. In August 2016, then-Uber CEO Travis Kalanick announced his plan to sell his Chinese Language trade to Uber for a 17.7 p.c stake in Didi and a seat on the corporate ’s board. In trade, Didi invested $1 billion in Uber.
Didi has also invested in lots of of Uber ’s rivals, including Lyft, India ’s Ola, Singapore-founded Seize, Estonia ’s Taxify, and Careem in the Heart East. Now, with its purchasing of a controlling stake in 99, it has moved right into a new, more in depth sport: mergers and acquisitions.