In its most recent announcement, China’s largest ride-hailing app, Didi Chuxing stated that it had raised over $4 billion in its latest round of funding. The announcement is certain to cause some worry for the company’s competitor, Uber.
Didi has already stated that it now looking to expand its reach overseas. This announcement, combined with the new investment is bad news for the U.S. based Uber.
Uber has already faced a blow this week after the European Court of Justice (ECJ) ruled against the company and labelled it a transportation firm instead of a digital company.
The ECJ ruling means that Uber will now have to obey all the transportation rules prescribed by each government. Thus Didi’s announcement has come at a bad time for the U.S. based taxi-hailing company.
The new investment means that Didi now has the financial backing to expand its reaches. The company has already stated that it will start offering its service in Mexico very soon. Didi has also stated that it will be looking to offer its services in Taiwan.
Didi stated that it will be using the proceeds from the ventures to “scale up investments in AI (artificial intelligence) talent and technologies, to further build up its intelligent driving and smart transportation capabilities, and to bring more innovative and diversified transportation services to broader communities around the world”.
The company also stated that its new ventures are likely to attract even more investors from both China and the world. Didi already counts a number of major investments among its benefactors.
Japanese company Softbank admitted that it had made a sizeable investment in Didi but declined to state just how much. Other investors include, the Abu Dhabi state fund, Mubadala Capital and the Chinese e-commerce company Alibaba.
Surprisingly, Didi counts the U.S. based Apple Inc. among its investors as well.
Didi’s rising popularity means that Uber has got a lot more than a ECJ verdict on its plate.