Didi Chuxing Is Making a Play for One of Uber's Biggest Markets

Lloyd Doyle
January 13, 2018

The other takeaway from the deal is that Didi Chuxing is willing to acquire companies it has previously invested in, meaning there's a swath of companies on Didi's radar.

According to Reuters (citing a repot in Valor Economico, a leading financial newspaper in Brazil), the deal values 99 at $1 billion.

A spokesperson for 99 said he was not authorized to talk with us but that there could be more news later.

The company said the investment builds upon the deep existing partnership between Didi and 99 to further accelerate market growth in Latin America and bring more transportation choices to the region's citizens. The price wasn't disclosed, but a person familiar with the matter put it at about $600 million for a majority stake. To date, Didi is a large investor in Southeast Asia's GrabTaxi Holdings Pte.

Didi previous year became Asia's most valuable start-up company.

Didi has made no secret of its desire to expand beyond China, particularly in light of the growing number of Chinese customers who travel overseas. Didi has not officially announced any deal with Bluegogo (although we are asking and will update as we learn more).

"Didi first invested $100 million in 99 in January 2017, getting a stake and management rights in the Brazilian app".

The statement from Didi called the 99 Taxis acquisition a "significant step next step of Didi's global strategy".

Regional expansion beyond Brazil has always been on the cards for 99.

Cheng Wei, founder and chief executive of Didi, said in Wednesday´s statement that "globalization is a top strategic priority for Didi".

After Uber sold its Chinese business to Didi in exchange for about a 17.5 per cent stake in the Chinese company in August 2016, it looked like the era of fierce competition and massive losses might end. The company has had such a stronghold in Mexico that few competitors - including 99 - were willing to attempt an expansion into what was the company's third-biggest country market in 2015.

Other reports by Iphone Fresh

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