Uber Rival In China Is Now a $50 Billion Worth Business

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didi chuxing uber

Didi Chuxing, the ride-hailing service in China, now has a valuation that is close to their business rival, Uber. After the latest round of funding, Didi Chuxing has a valuation of $50 billion, while the San Francisco, California-based Uber has been valued at $62.5 billion after a funding round of last year.

However, not all valuation experts agree that Uber should be valued so high. A few think Uber’s current valuation shouldn’t be more than $50 billion, particularly after the negative publicity the company has received in recent months. If that is true, then both the businesses would be placed in the same bracket.

More Than 100 Investors Are Backing Didi Chuxing

According to CB Insights, these two startups along with Ant Financial now have the maximum valuation. Ant Financial, the payments affiliate of Alibaba is valued at $60 billion. The US rival of Uber Lyft, raised $500 million recently, bringing up their valuation of $7.5 billion.

Didi Chuxing is said to have received between $5 and $6 billion of fresh funds in the last round. More than 100 investors are now backing Didi Chuxing, which includes Apple (NASDAQ:AAPL), the Jack Ma led Alibaba (NYSE:BABA), China Merchants Bank, and SoftBank (TYO:9984) of Japan.

Didi Chuxing Will Go Global With the New Funds

The business will use this money to finally come out of China and go global. Didi Chuxing will also use the funds to research driverless car technology and other high-technology advanced transportation systems. So finally, the company will be able to take on their rival globally. In fact, the Chinese service has already made a strategic investment in Brazil in the ridesharing startup 99.

Didi Chuxing is based out of Beijing. Formerly called Didi Kuaidi, the business provides ride-hailing services to about 400 million people across 400 cities in China. The business was set up by Cheng Wei in 2012. Wei incidentally, used to be a manager at Alibaba once.

Uber and Didi Chuxing used to be fierce competitors once in the country, but Didi purchased the operations of Uber in the Chinese market last year, once it became clear that both the businesses were losing money because of the competition, which led them to finance losses as they were offering deep discounts to capture market share.

Uber received 20 percent ownership of the company, and also $1 billion. The new valuation of Didi Chuxing includes the acquisition of Uber’s China operations.