Didi Chuxing MIGHT TAKE A $6 Billion Investment Round From SoftBank


Didi Chuxing MIGHT TAKE A $6 Billion Investment Round From SoftBank

6 billion circular of funding backed by japan telecom giant SoftBank (NASDAQOTH: SFTBF). The brand new circular comes as Didi has been strike hard by new ride-sharing rules in China and as it attempts to create a global transportation company with a growing focus on driverless vehicles. Image source: Getty Images. There are many reasons why Didi would want to raise so much capital. First of all, the business said late this past year that it desires to become a global company and has made several techniques to make that happen.

It purchased a stake in Brazil’s largest ride-sharing company earlier this year, has committed to an Indian ridesharing company called Ola and comes with an investment in Lyft. You may also remember that Didi Chuxing bought Uber’s business in China last year, which marked one of the company’s most important techniques to date. All of this expansion is costly and it comes at the same time when Didi’s core business in China is undergoing major changes.

Recently, Didi has run into some problems with increasing ride-hailing rules in China. The government is cracking down on drivers who live in various cities than they work, and are starting to require various kinds of licenses to verify that they’re permitted to work in the town. In response, many motorists have stopped working so they don’t really have to pay fines, and Didi has cut motorists out of its app.

The result has been a shortage of Didi drivers in some cities. Having extra capital on hand could help Didi weather the existing regulation storm in a few Chinese cities although it works with local governments to get its business back on track. The Bloomberg record also noted that the influx of new cash could be used for research and development for Didi’s autonomous car plans. It’s no key that the world’s technology companies and automakers have big programs for driverless vehicles and Didi wants to get this to technology important, too. The business just opened up Didi Labs in Mountain View, California, this month and has recently hired some self-driving car experts away from Uber.

35 billion after its big funding round last year, and its valuation could rise again this year if the SoftBank round actually happens. It’s worth noting that if Didi goes through a new investing round, some current investors, like Apple and Tencent, might participate also. Bloomberg mentioned these companies might invest on a pro rata basis (which would provide them with the same degree of their current Didi ownership) so that their stake in Didi isn’t diluted by the new investing round.

What’s becoming increasing clear is that Didi is constantly on the garner a lot appealing from technology companies, and a new investing round could make the company more powerful even. Didi is already in 400 cities across China, has 300 million customers, every day and delivers 20 million rides. 6 billion could go quite a distance toward helping Didi build out is ride-hailing business and driverless car ambitions even more. When investing geniuses Tom and David Gardner have a stock tip, it pays to pay attention.

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