Making the car aggregation scenario more competitive, China based Didi Kuaidi has confirmed an investment in India’s Ola Cabs. Interesting thing to notice is that both the companies have Uber as the main competitor in their respective markets.
Earlier this month, there were reports of Ola looking to secure a large round of around $500 million at a $5 Billion valuation, this latest investment, amount for which is still unknown, seems to be more of a strategic investment for Didi Kuaidi to take on Uber globally.
Didi Kuaidi seems to be taking the competition with Uber in the local market, but strategically, the company seems to be investing in Uber’s competitors since a while. Before Ola, Didi Kuaidi invested in Lyft, the biggest rival for Uber in United States, along with participating in a $350 Million funding round in GrabTaxi, a service operating in South East Asia.
Talking about Uber, the company which continues to take the business out of the hands of competitors, raised at least $8 Billion at a $50 Billion valuation earlier this year to continue on the dominating trend globally.
Along with Didi Kuaidi, investors like Softbank and DST are in the competitor list for Uber as they are backing the nationalized cab services. Uber might be the clear leader in its home market of United States, however, the same is not the case in countries like India and China where the market is more captured by the local players.
Ola boasts about completing over 750,000 rides every day using the 320,000 cars network in over 100 cities at the same time, Didi Kuaidi holds more ground with over 7 million rides completed daily in China.
Talking about head to head competition, Ola has raised just under $1 Billion in total from investors such as Softbank, Falcon Edge Capital and Tiger Global. However, Uber heads better as they plan to invest $1 billion more in India by 2016 to grab more market.
We tried reaching to Ola for an official statement about the news and to have a fixed figure of investment, however, there has not been any response yet. We will, however, keep you updated with whatever data we get. Stay Tuned.