July 25, 2017

Why Didi is raising so much cash



Didi Chuxing logo
By Didi Chuxing (http://www.xiaojukeji.com/index/index) [Public domain], via Wikimedia Commons

Chinese ride service Didi Chuxing raised $5.5 billion in May, adding to more than $10 billion it raised last year. Assuming it is no longer burning through $1 billion a year as it did during its fight for Chinese market share with Uber, Didi now has a staggering cash balance for a startup, perhaps as much as $13 billion.

This is very strange. Since when do startups raise and then just sit on this much cash? Especially since Didi is now a near-monopoly in China, having conquered its two largest rivals. Following Didi’s take over of the local operations of Uber and Kuaidi Dache, Beijing’s CNIT-Research recently put its market share at 94%.

So what is the rationale for raising all this money? In the press, the commonly cited motivations for Didi’s latest fund raising are […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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