Uber rival attracts investment from Beijing Automotive

Didi-Kuaidi

There’s a new rival I China to the popular car pick-up business Uber, and it’s called Didi Kuaidi.

Recently, the Didi Kuaidi has attracted investment from attracted Beijing Automotive Group Co., sources close to the matter say.

Beijing Automotive, controlled by the State-owned Assets Supervision & Administration Commission of Beijing, joins sovereign wealth fund China Investment Corp. as investors in Didi, the people said, asking not to be identified because the matter is private. The rival to Uber Technologies Inc. has already raised US$2 billion in its latest round.

Xiaoju Kuaizhi Inc., which owns the Didi and Kuaidi mobile applications, is expanding its shuttle bus, chauffeur and carpooling services in China. The company is said to have fetched a US$15 billion valuation from investors, including Ping An Ventures and Capital International Private Equity Fund, in this round.

Didi, Beijing Automotive and CIC declined to comment.

Beijing Auto makes cars for the China market through ventures with Hyundai Motor Co. and Daimler AG, according to its website.

Didi Kuaidi runs two apps that customers use to access its services, while combining their technology and data. The company has 1.5 million taxi drivers in its network out of the 2 million in all of China, according to the letter to investors.

Uber plans to invest more than US$1 billion in China this year, according to a letter the San Francisco-based app sent to investors earlier this year.