The company also confirmed the $100 million investment made by the Chinese company in the $530 million funding round held earlier this year.
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The cash investment was drummed up in a financing round, which included money raised from the Middle Kingdom’s tech giants Alibaba and Tencent. Adding to the combined power of their advanced algorithm systems and ride-matching capabilities, Lyft and Didi Kuaidi will also share local knowledge and other business-related resources to explore new models of cross-platform and cross-regional market development, with an aim to build a healthy, collaborative global ridesharing industry.
San Francisco-based Lyft and Chinese firm Didi Kuaidi announced a strategic worldwide partnership on Wednesday that will make it easier for users to hail rides while visiting either country.
Didi Kuaidi president Jean Liu said the partnership, which goes live early next year, opened “a brand new era for the global rideshare industry”. According to Lyft, in 2014 almost eight million people traveled between the two countries. Market players from home and overseas , including Didi Kuaidi and Uber, have faced investigation multiple times.
Cheng Wei continued, “Didi Kuaidi deeply admires Lyft’s commitment to best serve their driver and passenger communities”.
Why would Lyft and Didi Kuaidi want to get involved in each other’s markets?
“Our vision was never just about the United States”, said Lyft cofounder John Zimmer in a press conference announcing the partnership.
Didi-Kuaidi has 82 percent of the market in China, a second-quarter report from the consulting company Analysys global said.
While some critics think the numbers that Uber is claiming to have in China may be overblown, it’s clear that the company is making a big push. The answer is simple – for a smaller Lyft, partnering with Didi Kuaidi means being able to expand heavily into China without having to dole out the kind of funds Uber can and is spending.
Didi-Kuaidi users can do the same on their trips to the United States, she said. “China has 800 million people living in the cities, and they can’t all have cars”.
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The partnership supports Lyft’s expansion in China, where Uber is already operating.
