Brief: Didi invests in European ride-hailing startup Taxify

Photo credit: Taxify.

The news:

• Chinese ride-hailing giant Didi Chuxing has partnered with Estonia-based ride-hailer Taxify, the two companies announced today.
• Through the deal, Didi will invest in Taxify “to support the latter’s further growth and innovation across its diversified markets,” according to a press release. The investment amount is not specified.
• Taxify is present in 25 cities in Europe, West Asia, and Africa. It also operates in Mexico. It claims to have 2.5 million users and had previously raised US$2.4 million in funding.

Why it matters:

• Besides beating Uber in its home market of China, Didi has been actively reaching out to international markets. It invested US$1 billion in Uber’s US competitor Lyft and joined a US$2 billion round in Southeast Asia’s Grab. Other deals include a partnership with Brazilian ride-hailing service 99.
• The European ride-hailing market is home to competitors like automaker Daimler Benz, whose MyTaxi service has been acquiring local rivals this year.
• Uber is still fighting to overcome a crisis on multiple fronts, including a rocky search for a new CEO. Recently, it ceded Russia and some adjacent markets to local player Yandex.

Source: Didi Chuxing, Taxify.