Didi and Uber denied cooperation rumor, and fierce price war will go on

Gasgoo.com (Shanghai July 25^th)–Rumor of cooperation between Didi and Uber comes around. But the two sides all denied the rumor when receiving interviews from reporters.

In fact, the two companies are spending great funds in seizing the market. Uber announced the RMB Uber discount of 30% in March, 2015 and that Uber would burden drivers’ incomes and passengers’ benefits. Didi said it would invest at least USD 1b every year to enlarge the business in China.

The large subsidiaries have taken great effects. Data from Uber China shows that they have entered 21 cities, with the market share of 35% in November, 2015. Data from CNNIC also shows that Didi has covered more than 400 domestic cities, seizing the market share of 87.2% and ranking first in the industry. The average daily order has just exceeded 10m just some days ago.

It’s remarkable that both Didi and Uber have raised their prices to different degrees. Liu Qing, President of Didi, also admits that, subsidiary from Didi has decreased greatly this year.

Facts prove that the two companies are having independent developments. Data from Didi shows that the company plans to be listed in 2018. Liu Zhen, Senior Vice President of Uber China, also reveals that Uber China has plans to be launched into the Chinese market.

Besides, the two companies also have rich cash flows. Didi received an investment of USD 1b from Apple Corporation this June, while Uber holds an investment of USD 3.5b from PIF, which will be used in its global businesses.

An analyst told reporters that no evidence shows that the two companies will have any cooperation. “Didi and Uber are competing with each other in the Chinese market, and fierce price war will still go on. Oligopoly effect has appeared in the taxi-hailing application market, another round of competition will turn up when both sides are well-capitalized.”