Revving up its world rivalry with Uber, Chinese language ride-hailing big Didi Chuxing has introduced it is shopping for Brazilian startup 99.
The deal is price about $600 million, based on an individual accustomed to the acquisition.
Didi is little recognized outdoors its house market. However the Brazilian deal displays its push to change into a serious worldwide participant after driving Uber out of the Chinese language market in 2016.
The Chinese language firm secured $four billion in contemporary funds late final month, partly to gas its worldwide ambitions.
“Globalization is a prime strategic precedence for Didi,” CEO Cheng Wei stated in a press release Thursday saying the acquisition of 99, Uber’s most important competitor in Brazil.
Didi was already the lead investor in a $100 million funding spherical for 99 a 12 months in the past.
Over the previous 12 months, it has despatched engineering groups to Sao Paulo to work on enhancing 99’s know-how to make it extra aggressive with Uber.
Didi sees similarities between cities in China and Latin America, together with “patterns of city improvement and erratically developed public transportation programs,” a spokeswoman for the corporate instructed CNNMoney.
Peter Fernandez, 99’s CEO, stated that changing into a part of Didi “will vastly improve to broaden our companies all through Brazil.”
Didi seems to be curious about rising elsewhere in Latin America: Reuters reported final month that it plans to broaden into Mexico later this 12 months. The Didi spokeswoman declined to touch upon the report.
The enlargement extends Didi’s heated rivalry with Uber, which shifted its attention and resources to Latin America after retreating from China. Uber is the main experience hailing firm in Brazil, and Mexico Metropolis is one among Uber’s busiest markets on the planet.
Didi has additionally made inroads into a number of different world markets which are essential to Uber.
It has partnered with seven worldwide ride-hailing firms, together with Seize in Southeast Asia, Ola in India and Taxify, which operates in Europe, Africa and different areas. Working as a unfastened coalition, the businesses have a greater probability of competing towards Uber and its formidable struggle chest.
The collection of offers lately has additionally created a tangled net of alliances within the trade.
Uber and Didi fought one another for years in China earlier than Uber sold its business in the country to Didi in 2016.
Uber turned Didi’s largest shareholder as a part of the deal. Didi holds a minority stake in Uber, too.
CNNMoney (Hong Kong) First printed January four, 2018: 6:01 AM ET