Rumoured news of Uber raising investment to penetrate into Chinese market has been confirmed by company CEO and Founder Travis Kalanick. He said that Uber is raising $1.2 billion but refused to reveal the investors or when will the deal be closed. The sum is still not finalized as the funding amount might be raised further, said Kalanick.
In December 2014 Baidu, China’s top search engine invested an undisclosed amount in Uber.
Didi Dache and Kuaidi Dache are China’s two Uber-style private car rides backed by Tencent and Alibaba, respectively. They both merged into one company, now known as Didi Kuaidi.
To battle Uber’s growth and expansion in China, Didi Kuaidi has raised an amount of $3 billion. The latest round of funding is an addition of $1 billion from unnamed investors, to previously raised $2 billion funding during the month of July, as reported by Tech in Asia. The $2 billion round of funding was led by Capital International Private Equity Fund and Ping An Ventures.
Didi Kuaidi observes 3 million taxi rides and 3 million private car rides each day, across all its apps.
As per Didi Kuaidi chief Cheng Wei, Uber founder Travis Kalanick himself gave the startup an ultimatum to either ‘sell their 40% shares or be defeated’. Cheng Wei sought advice from his roster of investors. Tencent CEO Pony Ma told him to “meet the enemy head on”. Alibaba founder Jack Ma called Uber’s “imperialism” a “paper dragon,” meaning it looks threatening but is actually weak. He also advised him to delay negotiations further for two years.
Both the companies are aggressively raising funding to grow in China. The strategy followed by both the companies is still unclear. It will be interesting to see which company holds the Chinese taxi hailing service share the most and how.