State-owned enterprise China Post Group has made an investment into Chinese ride-hailing service Didi Chuxing, which recently merged with Uber China in a deal that saw the latter acquiring a 20 per cent stake in the Chinese ride-hailing company. Financial terms of the strategic investment were undisclosed.
According to the two companies, the investment and partnership will see the integration of resources and combined operational experience.
Didi’s Founder and CEO Cheng Wei stated: “China Post Group is a well established brand in China, and its has service chains across the country. Through cooperating with it, Didi will develop a more reliable, and enriched mobility experience for our users.”
To date, state firms like China Life, China Merchants Bank, and Baic Motor Corporation Ltd. have participated in Didi Chuxing’s equity financing rounds. The investment by Apple earlier this year is also credited with strengthening Didi Chuxing’s market leadership and its acquisition of Uber’s China assets and operations.
In June 2016, Didi Chuxing concluded a $7.3-billion funding round that saw participation from Apple, China Life Insurance, Alibaba-backed Ant Financial and other new investors at a post-money valuation estimated at $28 billion. Combined with backing from Alibaba Group and Tencent, as of June 2016 Didi Chuxing claimed to possess $10.5 billion in available funds.
According to 2015 year-end data, it has a registered user base of 300 million people and 15 million registered drivers across 400 Chinese cities, with more than 16 million trips completed daily on Didi’x platform.
“Internet-related industries have grown fast.Leveraging emerging platforms in innovative technology and business models, our company will seek to transform from traditional business,” said Li Guohua, general manager of China Post Group.