Chinese Ride-Hailing Giant Didi Chuxing Raises Billions to Counter Uber Abroad

China’s ride-hailing firm Didi Chuxing has raised US$4 billion in funds earmarked for expansion overseas and into areas such as artificial intelligence (AI), as it looks to challenge Uber Technologies. The company said on Thursday (Dec 21).

The latest investment values Didi at over $50 billion, according to Reuters, and equips it with the cash needed to aggressively pursue expansion opportunities abroad.

The firm has expanded overseas rapidly in the past year since sealing its dominance in China with the purchase of Uber’s local business in 2016, ending a cash-burning subsidy war that cost the United States firm roughly US$2 billion.

Earlier this month, Reuters reported that Didi will launch in Mexico next year. The move would mark Didi's first expansion of its services beyond China. However, the firm said it was looking to bring its ride-hailing service to Taiwan.

Didi said it intends to use the proceeds to “scale up investments in AI talent and technologies, to further build up its intelligent driving and smart transportation capabilities, and to bring more innovative and diversified transportation services to broader communities around the world.”

The firm has expanded overseas rapidly in the past year since sealing its dominance in China with the purchase of Uber’s local business in 2016, ending a cash-burning subsidy war that cost the United States firm roughly US$2 billion.

Didi has also invested in several of Uber’s rivals globally, including US-based Lyft, Brazil’s 99, India’s Ola, Singapore-based Grab, Estonia’s Taxify and Careem in the Middle East.

The firm’s expansion coincides with a difficult period for Uber, which is grappling with heightened regulatory scrutiny in Europe and a series of scandals.