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Uber China raises US$2 billion — but its valuation is less than half of Didi Kuaidi

Uber China announced today that the company has raised US$2 billion from Chinese investors in a Series B round. Investors include China Minsheng Bank, real estate firm Vanke and Hainan Airlines Group, according to Reuters.

The original article is below

Uber China closed its Series B funding round yesterday and announced that the company's latest valuation reached US$7 billion. The company is clearly well funded, but it may be too late in the Chinese market.

Uber's biggest competitor in mainland China, Didi Kuaidi, was valued at around US$16.5 billion as of September. And after yesterday's report that cemented Didi Kuaidi's dominance, the company is arguably "the world's largest mobile-based ride-hailing platform," and its growth doesn't seem to be slowing any time soon.

Uber's funding statement included China Taiping Insurance, Guangzhou Automobile Co. Group, China Life, CITIC Insurance, among others. Acknowledgments were made to Hainan Airlines Group, which had invested.

Uber China raises US$2 billion ——But its valuation is less than half that of Didi Kuaidi

Partnership with Hainan Airlines Group is a story that cannot be ignored. The Group is China's largest civil airline and is listed among Fortune magazine's Global 500 companies. In a statement, the company said it plans to leverage Hainan Airlines Group's "global revenue streams across multiple sectors: aviation, finance, logistics and travel."

But Uber faces problems in China that are unthinkable in other countries and regions. What if $7 billion just isn't enough and it's too late?

If September's estimates are correct, Didi Kuaidi's valuation is mind boggling, making $7 billion seem like cheap money. Add to that the fact that Didi Kuaidi has partnerships with almost every Uber competitor in Asia and the US, and Uber looks bad.

Uber will certainly survive in China. But China is his Didi Kuaidi playing field, given that his biggest competitor boasts billions of rides, has partnered with the Chinese government, and has invested in his Uber competitors outside of China. I have no doubt about that.

【via Tech in Asia】 @TechinAsia

[Original]

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