Didi Chuxing Invests in Uber Rival in Brazil
Didi Chuxing is expanding its business to South America with $100 million investment into Brazil-based taxi aggregator 99.
Earlier this month, China's largest ride-sharing company announced its global expansion to Brazil. Its goal is become the global leader in the mobile transportation industry. Didi Chuxing announced in 2016 that it plans to expand outside China and is forming a strategic investment with Uber competitor in Brazil 99. The investment in 99 is Didi's first major expansion in Latin America.
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Brazil’s 99 is an app-based on-demand private car and taxi-hailing services that operates across 550 cities. It is the world’s second fastest-growing internet market. The company 99 has more than 140,000 registered drivers and over 10 million user downloads. It is the leading ride-sharing company in Sao Paulo, Rio de Janeiro, and other tier-one cities across Brazil.
Peter Fernandez, CEO of 99, said that the company “is incredibly excited to partner with Didi, the world’s largest and best ride-sharing platform. We welcome Didi to Latin America. Didi’s financing, state-of-art technology and operations knowledge will play a key supporting role as 99 actively expands our network and services in Brazil and reshapes the competitive landscape in Latin America.”
However, the exact amount in the investment was not disclosed. Under the partnership, Didi will have a seat on 99’s board of directors and will provide guidance in technology. Didi will also help in the product development and operations while 99 expands across Latin America.
Didi’s expansion to Brazil means competing again with its biggest rival Uber. Latin America is a huge opportunity for Uber, and Brazil became its third-largest market.
This is not the first time that Didi supported an Uber competitor. In 2015, Didi made an investment in Lyft, which is the second largest ride-hailing company in the United States.