China's homegrown Didi Kuaidi is pulling all stops in order to top Uber's reign. (Photo : Getty Images/ ChinaFotoPress)
China's homegrown Didi Kuaidi is pulling all stops in order to top Uber's reign in the country.
According to Bloomberg, the company has already secured at least $1billion worth of commitment from investors. In 2015, the company's valuation of $16.5 billion was subsequently strengthened by an additional $3 billion budget. This year, the company is projected to hit $20 billion valuation against its rival, Uber.
As part of its ongoing expansion, Didi Kuaidi started to invest in adding more drivers as well as keeping their monetary revenue in check in order to control their rates. Their low fare practice apparently puts them at an advantage, readily putting Uber behind them.
Uber's valuation of $62.5 billion in 2015 propelled Didi Kuaidi to invest through international partners, venturing their business in United States' Lyft and India's Ola. Uber's woes when it comes to investing in Asia fell to a staggering $1.7 billion lost. Uber's Chief Executive Officer Travis Kalanick, on the other hand, was quick to disclose that the company has made significant revenue in the U.S.
Didi Kuaidi currently serves Chinese commuters using transport mediums such as peer to peer rides, registered taxis, shuttle buses and chauffer rides. Looking through how much clients Didi Kuaidi generates per day, according to Tech Crunch, the company currently books at least 10 million customers a day, wherein half of the services requested aims on private car rides.
Uber China, on the other hand, has been quietly raising revenue, even surpassing their goal of $1.2 billion. In January, the company had an estimated worth of $7 billion valuation, whereas Didi Kuaidi disclosed their bank money at $3 billion.
During an interview with Betakit, Kalanick implied that although he believes Didi Kuaidi is their biggest rival in China, their competitor are making little profit amid their extensive claims of having enough clients. Didi Kuaidi has since denied Uber's claim, saying most of their money went to investment on technology for their services. A spokesperson for the company said that it will take time before they can fully see potential and earn great revenue on their services.
Despite Didi Kuaidi's $20 billion valuation, the Beijing-based transportation network remains more positive and committed on attracting additional investors for their company.
Watch Didi Kuadi's fundraising video below:
