CHINA TOPIX

11/02/2024 01:32:43 pm

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Uber Backers Claim Ride-Hailing Company Made Deals With Didi, But Chinese Company Denies Ties

Uber

(Photo : Spencer Platt/Getty Images) Men stand in front of a Uber sign as drivers protest the company's recent fare cuts and go on strike in front of the car service's New York offices in New York City.

Investors in Uber Technologies Inc. have reportedly revealed that deals are being made between the U.S. ride-hailing giant and its counterpart in China, Didi Chuxing.

Investors are reportedly pushing Uber to enter a partnership in China as the company is staging a costly fight to expand in the region in the face of Didi Chuxing's unwavering resistance. Investors have reportedly came up with a potential deal, but the owners of both companies need to have a meeting to negotiate.

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None of the investors who released the information have been identified  since they did not have official authorization to speak to the press on the issue, Bloomberg reported. One of Uber's investors said that he had 10 meetings with Didi Chuxing shareholders and that they want the two companies to enter a deal.

Both Uber and Didi Chuxing have spent million to attempt to dominate the Chinese market. Uber said in the past that it plans to spend around $1 billion annually to expand in China. Both companies have also given out incentives to their employees and offered cost-free rides to attract more customers.

However, Didi Chuxing is said to be leading since 14 million drivers have signed up with them and the company is available in up to 400 Chinese cities. For Uber, business is better in other areas such as the United States and Canada.

Didi Chuxing recently clarified that it has no plans of partnering with Uber after the aforementioned reports surfaced, China Daily reported. Uber has not yet commented on the matter.

Last year, Didi Chuxing partnered with a ride-sharing company called Lyft Inc. Both companies have launched their partnership in the U.S., India, and in Southeast Asia. In India, the ride-hailing app is called Ola, while in Southeast Asia it is called Grab. Didi Chuxing has invested $100 million in Lyft. Lyft is Uber's main rival in the U.S. 

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