While Didi confronts many of the same challenges bedeviling Uber-both are bleeding money and battling regulators. ( Source: Bloomberg) Chinese ride-hailing giant Didi Chuxing just raised more than $5.5 billion, giving Uber Technologies Inc. Chief Executive Officer Travis Kalanick one more thing to worry about.
Didi’s record funding round is said to value the company at more than $50 billion and gives it a war chest to ramp up efforts to harness artificial intelligence, build driverless cars, and compete more aggressively in foreign markets.
The cash infusion coincides with a rough period for Uber, which is facing lawsuits and an image problem, and follows a detente in China after Uber agreed to essentially cede the market to Didi in exchange for a significant stake.
“The bruising battle with Uber taught [Didi] a lot,” said William Bao Bean, a Shanghai-based partner at venture capital fund SOSV. “Now it’s battle-hardened, and can buy the best talent in the world to attempt to go big in China, and also go global.” While Didi confronts many of the same challenges bedeviling Uber-both are bleeding money and battling regulators-investors are still betting both will eventually have fleets of driverless vehicles in cities around the world. It’s a […]