A China-based enterprise Didi Chuxing acquired Uber China business market last week eventually making a strong hold over Asia’s car-hailing business. The entire business venture has started hampering India’s very own taxi service provider Ola, which solely holds the market at Rs. 80, 200 crores.

didi chuxing

Ola has been ruling domestic streets since its launch in 2005 and recently visited China to have talks with Didi for funding purpose. The company’s executives met delegates belonging to Chinese firm asking for fresh capital funding so as to fight Uber who has occupied the entire Indian market to the roots.

READ: Uber To Launch Its Own Navigation System

A negative respond left Ola Inc. in many dilemmas as Didi stated to work on its depreciating market and Uber renowned as rising king in car-hailing industry sorted out all the problems after the acquisition. Uber and Didi together have invested and raised billion of dollars in China market by a driver winning strategy, attracting customers through discounts and much more.

Ola, on the other hand, is backed up by Japan-based Soft Bank Group, which automatically comes as rivals to China’s Didi Chuxing. Although, Didi invested almost $30 million in Ola, but its low business has performed badly in the domestic market itself. Also, US-based Lyft and Southeast Asia-based Grab have funded Ola in the past, due to which non-funding in Ola came as a reason.

At present, it is unclear whether Didi will fund or provide equity to Ola, which has already raised funds worth 1.3 billion USD till date and stands at a whopping capital on $5 billion. Ola’s key investor SoftBank Capitals have been struggling lately with its financial crisis. VC is selling assets and shares to curb crisis, which comes as a great threat to funding for Ola Inc.

In near future, the Taxi-hailing firm was giving a thought to raise almost $1 billion from SoftBank, but it seems to crash down as via mail Didi clarified that it is not interested in foreign investments at present. The acquisition od Didi over Uber China has completely sidelined Ola in overseas market which also gives Uber a stronger hold over Indian market with more funds.

Uber Inc. is currently determined to double up its resources, staff, technology, and a keen focus on the domestic market which automatically brings both car-hailing firms face to face. Earlier they have been playing cheap business tactics so as to retain the market in India but Supreme Court’s harsh step bound them to back off and focus on clean and fair business in near future.

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