Bottom line: Didi Chuxing’s new marriage with Uber China could quickly come under stress due to rivalries between the pair outside China, and might force them to forge a broader global alliance.
Didi, Uber set to clash outside China
A couple of new reports are spotlighting how the new mega-merger between Didi Chuxing and Uber’s China unit is creating uncertainty for existing global alliances involving the 2 former bitter rivals. The larger of the headlines has Uber’s US rival Lyft suddenly questioning its alliance with Didi less than a year after the pair formed the tie-up. The other has Didi helping to raise money for Grab, also known as GrabTaxi, a bitter rival of Uber that operates service in 30 cities within 6 Southeast Asian countries. Read Full Post…
The following press releases and news reports about China companies were carried on August 4. To view a full article or story, click on the link next to the headline.
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Didi, SoftBank Lead $600 Mln-Plus Round for GrabTaxi (English article)
Qihoo 360 (NYSE: QIHU) to Spin Off Businesses for Future IPO in China (English article)
Fosun (HKEx: 656) Denies Under Pressure to Sell Assets (Chinese article)
China Internet Users Reach 710 Mln, 92 Pct Access Via Mobile – CNNIC (Chinese article)
Burberry (London: BRBY) to Buy Out Partner in China JV for 54 Bln Pound (Chinese article)
Bottom line: A new global car services alliance led by Didi Kuaidi and Lyft won’t pose a serious threat to Uber, though the company could face ongoing challenges in China from Did stakeholders like Tencent.
Uber hits new obstacles from WeChat, Didi alliance
Uber’s road into China hasn’t been an easy one, and 2 new developments reflect the growing challenges it will face from incumbent players and their backers in what’s likely to become the world’s biggest market for hired car services. The bigger of those 2 news items has Uber’s chief China rival Didi Kuaidi forming a global alliance to counter the rapid rise of the US giant.
The latter news has local social networking (SNS) leader Tencent (HKEx: 700) locking Uber out of its hugely popular WeChat instant messaging platform for at least the second time this year. The reports cite Uber’s malicious sales practices as the reason for WeChat’s decision, and it’s true that the company is known for its aggressive tactics to win business. But it’s also noteworthy that Tencent is a major stakeholder in Didi Kuaidi, and no one would be surprised if WeChat’s move was at least partly aimed at protecting that investment. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 5-7. To view a full article or story, click on the link next to the headline.
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Ola, Didi Kuaidi, Lyft and GrabTaxi Gang Up to Kill Uber (English article)
Bottom line: Didi Kuaidi’s Lyft investment looks smart but will disappoint those hoping for a more aggressive move into the US, while a new taxi app backed by 2 Beijing fleet operators is unlikely to pose a major challenge to private rivals.
Didi Kuaidi drives into US with Lyft investment
Anyone with big hopes for Chinese hired car services leader Didi Kuaidi following its latest mega fund-raising will be disappointed to hear the company’s highly anticipated move to the US is coming through a minor investment that’s unlikely to yield much results. Many were hoping for bigger things from this aggressive Chinese company, but instead Didi Kuaidi looks set to enter the US through an investment and strategic tie-up with local partner Lyft, a rival of the more high-profile and very aggressive Uber.
My view that many will be disappointed by this move is sincere, but at the same time I would also add that Didi Kuaid’s decision to avoid the US for now looks quite shrewd. History has shown that Chinese start-ups have far better prospects when they make developing markets the first stop on their global expansion road maps, rather than focusing on western markets that are lucrative but also far more competitive. Read Full Post…
Bottom line: Didi Kuaidi could rise over the next 1-2 years to challenge Uber, as it embarks on a global expansion starting in Southeast Asia, fueled by billions of dollars in new investment.
Didi Kuaidi, Uber race for new funds
China’s homegrown version of global hired car services giant Uber continues to race ahead, with word that Didi Kuaidi is on the cusp of a new fund-raising that’s similar in size to the many recent amounts raised by its larger US cousin. At the same time, we’re seeing the earliest signals that Didi Kuaidi may be getting read to challenge Uber outside of China, with separate reports saying the former is in talks for a major investment in a major Southeast Asian taxi app operator.
The market for hired car service apps seems to change almost daily, with hardly a week passing without the announcement of a major new milestone or conflict between these aggressive companies and traditional taxi drivers. Uber is a good example, hitting speed bumps with government raids of 2 of its Chinese offices earlier this year, only to disclose it had no intention of leaving the market and was preparing to invest $1 billion in China this year alone. (previous post) Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 30. To view a full article or story, click on the link next to the headline.
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Wanda Cinema (Shenzhen: 002739) to Raise 2.2 Bln Yuan for 16 Purchases (Chinese article)
Legend Holdings (HKEx: 3396) Edges up in HK Debut After $1.96 Bln IPO (English article)
Didi Kuaidi Operator to Invest in Southeast Asian Taxi App ‘GrabTaxi’ – Source (English article)
KongZhong (Nasdaq: KZ) Receives Proposal to Acquire the Company (PRNewswire)
Putian Hospital Association Restarts Ad Buying on Baidu (Nasdaq: BIDU)
