Last year Chineses ride-hailing giant Didi Chuxing bought out Uber China for $35 billion, ending an expensive price war between the two companies, and allowing Uber to focus on other markets and possibly an initial public offering.
Now Didi Chuxing has announced that it has raised over $5.5 billion in funding; it is said that this brings the value of the company to more than $50 billion, enabling it to ramp up efforts to harness artificial intelligence, develop driverless cars and go global, where it will once again be going head-to-head with Uber.
Both Didi and Uber are looking to offer driverless vehicles in the futures, which will allow them to shuttle passengers back and forth using artificial intelligence, thus reducing costs greatly and increasing profits, since about two thirds of their cost goes to paying drivers, insurance and driver acquisition.
Didi's investors are said to include SoftBank in Japan and Silver Lake Kraftwerk in the U.S. as well as the Chinese institutions China Merchants Bank and the Bank of Communications, among others.
Uber retained approximately 17.5 percent of Didi, making it its largest shareholder, which means that Uber will also benefit from Didi’s success even if they are bound to clash in other markets, where they will face other competitors as well, such as Lyft Inc. in the U.S., Grab in Singapore and Ola in India.