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Didi to speed up overseas services

By Ma Si | China Daily | Updated: 2017-01-06 11:24

Didi Chuxing, China's biggest car-hailing company, indicated on Thursday that it was stepping on the accelerator of global expansion, with an investment in its Brazilian counterpart.

The move signals the Beijing-based group is refocusing its attention on expanding in overseas markets after it struck a truce with Uber Technologies Inc in China, analysts said.

Didi said in a statement it has invested an undisclosed amount in 99, a major ride-sharing firm in Brazil and will assume a seat on its board of directors.

Peter Fernandez, CEO of 99, said Didi's financing, technology and operating experience "will play a key supporting role as 99 expands its presence in Brazil and Latin America".

The Brazilian startup, founded in 2012, said it offers ride-hailing services across 550 cities in Brazil.

Didi Chuxing CEO and founder Cheng Wei said the move makes strategic sense.

"China and Brazil are the world's foremost emerging markets, with enormous opportunities for the ride-sharing industry," he said.

The investment came after Did acquired its arch rival Uber's China business last August, giving it 90 percent share of the world's biggest ride-hailing arena. Didi covers about 400 million users in more than 400 Chinese cities.

"The global battle is reignited," said Zhang Xu, an analyst at Beijing-based internet consultancy Analysys.

"Whether Didi can take on Uber in overseas markets will depend on how quickly it can integrate its resources with its foreign partners."

Forrester Research Inc tech analyst Wang Xiaofeng said that Didi could rapidly march into overseas markets via partnerships.

"But so far, Didi's ties with them have been capital-oriented, with limited cooperation on products and services," she added.

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