Chuxing is backed by Chinese e-commerce giant Alibaba, which is a big investor in the Indian e-comm market
In an effort to strengthen the competition against Uber Technologies globally, Didi Chuxing (formerly known as Didi Kuaidi), China’s largest taxi hailing service, has invested an undisclosed amount in India’s leading taxi aggregator Ola. Chuxing had recently inked deal with Uber’s US rival Lyft as well.
Uber is the main competitor for Chuxing in China, and Ola in India. Confirming the investment, Ola in a statement said, “We look forward to exchanging learnings from two of the world’s largest markets and the tremendous synergies this partnership can bring, towards our commitment of building mobility for a billion Indians.”
Chuxing is backed by Chinese e-commerce giant Alibaba, which is a big investor in the Indian e-commerce market.
This investment is part of Ola’s latest round of funding, which is expected to be at least $500 million, to counter Uber’s expansion in India. Of this, the company has already raised $225 million from Falcon Edge and other existing investors like Tiger Global and Softbank.
In an effort to woo customers, the company has lately announced a slew of measures like introducing shuttle bus service, ‘number masking’ feature to ensure its customers’ numbers stay private, rides at Rs 5 per km during off-peak hours and more. Uber too had made similar announcement following Ola.
Also, in an effort to get cab drivers on its platform, Ola recently announced that it will invest Rs 5,000 crore for cab leasing program under which drivers can lease a car for a minimal initial deposit. The company will tie-up with leading car manufacturers and financial institutions for the initiative. The drivers can opt for a monthly lease payments with an option to own the vehicle after a period of 3 years.
Founded in 2011 by Bhavish Aggarwal and Ankit Bhati, Ola operates in more than 100 cities in India and has over 2.5 lakh cabs on its platform. In a move to expand its reach, earlier this year, Ola acquired local rival Taxi4Sure for $200 million.