Didi is investing in Careem to strengthen the Dubai-based company’s position in the market and improve its services, the two companies said in a statement.
An investment figure was not provided.
The two companies will also collaborate by sharing information on transportation technology, product development, and operations, the statement said.
Careem, a Middle East rival to Uber Technologies Inc, offers services to 12 million customers in 13 countries, predominantly in the Middle East, the company said.
Didi offers services to more than 400 million users, according to the company. It acquired Uber China in August 2016.