The news is that Uber Technologies Inc has raised fresh funds amounting to $7 Billion for the expansion of its China unit. In its endeavor to raise funds, the company has brought in local partners HNA Group, an Airlines Operator in China, and Guangzhou Automobile, a local car maker. This fund raising is for waging a battle with a local Chinese rival, according to news gathered from reliable sources.
Uber Technologies Inc, the global leader in ride-hailing, said that it all depends upon Guangzhou and HNA Group to assist them in their fight against Didi Kuaidi Joint Co., a start up company, for market share.
According to Travis Kalanick, Chief Executive of Uber, the company has set their eyes on China as a focal point for rapid global expansion. News is that $1 Billion has been earmarked in 2015 for China alone, where a separate identity has been established in the name of Uber China.
Didi Kuaidi is the local rival, who is posing to be a formidable challenger and practically a threat to Uber, having $3 Billion of funding in the year 2015 and the valuation of which stood at over $16 Billion. The major shareholders of this funding are said to be Alibaba Group Holding Ltd., giants in e-commerce, and Tencent Holdings Ltd., a leader in the gaming industry.
It is the local partners that have played a significant part in supporting Uber in its fight against the local startups. What it stands as of now is that Uber has been able to garner support from China Taiping Insurance and China Life, the deep pocketed insurers. At the same time, DidiKuaidi has been able to find support from Chinese financial conglomerate Ping An Insurance (Group) Co. and China Investment Corp., by being able to raise funds to the tune of $740 Billion.