Didi Kuaidi Pressures Uber by Investing in Competitor Lyft

Shuang Shan

Update: During a joint press conference on Wednesday, Didi Kuaidi and Lyft announced a cross-border partnership that gives users of either app access to both services in the United States or China. The alliance, which will also allow users to pay in their native currency, will launch early next year. Didi Kuaidi also announced that it invested $100 million in Lyft during the May funding round.

Top Chinese ride-hailing app Didi Kuaidi Joint Co. has stepped up its assault on rival Uber Technologies Inc. by investing in one of Uber’s biggest US competitors, Lyft Inc. Didi Kuaidi joined Chinese Internet firms Alibaba Group Holding Ltd. and Tencent Holdings Ltd. in  backing Lyft with a fundraising round that yielded $150 million, lifting the company’s value to $2.5 billion.

Uber’s threat in Didi Kuaidi’s Chinese marketplace and Lyft’s US marketplace has banded the two companies together. Uber currently operates in 20 Chinese cities but plans to expand to 100 Chinese cities over the next year. To challenge Uber’s massive expansion plan in China and throughout Asia, Didi Kuaidi has raised $1.5 billion and has even invested in Uber’s Singapore competitor GrabTaxi Holdings Pte.

According to the Wall Street Journal, after the $150 million fundraising round back in May, Lyft is seeking future cooperation with Chinese investors.

(Photo by Carlos ZGZ via Flickr)