China’s Did Chuxing Confirms Investment Into Ola

Chinese ride-hailing app Didi announced on Monday that it has joined a group of investors in funding its Indian counterpart Ola, following its own financing of US$3 billion earlier this month. Previously, it protected US$400 lot of in Series E encouraged by DST Global, by using collaborations from GIC, Falcon Edge, SoftBank, Tiger Global, Steadview Capital and Accel Partners (American) in April right now.

The announcement was forwarded by Didi Kuaidi to tech news website TechCrunch.

Didi Kuaidi has confirmed that it has invested in Ola. The Wall Street Journal also reported that Singapore’s GrabTaxi may be a future target for investment or partnership with the global alliance of ride-hailing companies.

Didi Kuaidi is the largest cab-aggregator in China who recently invested a $100million in Uber rival Lyft.

Uber’s three most popular cities are all in China, but leaked financial documents indicate that the company is spending a lot more money than it is recouping on each ride.

In February this year, Didi Dache and Kuaidi Dache, two of China’s leading taxi-hailing apps, had announced their merger to create one of the world’s largest smartphone-based transport services firm “Didi Kuaidi”.

Uber claims to offer around 200,000 daily rides in the country while Ola claims to complete more than 750,000 rides. An initial investment of $75 million will be used to boost its driver numbers by 100,000 by the end of next year.

Pursuant to the deal, Didi Kuaidi released a statement saying they believe India and China are both rapidly growing economies with tremendous market potential. “We looks to engage local industry champions like Ola to share technology and best practices in product development and operational expertise – all honed from deep market data-driven operations.” said Didi Kuaidi in a statement.

SoftBank is the common investor backing most of the firms that are taking on Uber across Asia and in the United States.