Chinese company Didi ChuXing, known as China’s Uber, is leading a group of investors that will invest more than US$100 million in Brazilian company 99, which manages the 99Taxis transport application, the two companies said in a statement on Wednesday.
Under the agreement reached, Didi ChuXing will be entitled to appoint one of 99’s board members and, in turn, will provide “strategic guidance and support.”
The two companies, which announced the deal, did not give the exact amount of investment, the share capital of 99 that Didi ChuXing has acquired or the identity of the other investors.
Present in Brazil and Latin America, 99 has more than 140,000 registered drivers at its service and over 10 million users.
“99 is very excited about this partnership with Didi, the biggest and best journey sharing platform. We will expand our services and reshape the competitive market profile in Latin America,” said Paulo Veras, CEO of 99, who will continue in his role.
Founded in 2012, 99 started as an application focused on taxis but with the competition generated by the arrival of Uber in Brazil, created new categories of services, such as 99POP with private drivers (a similar service to Uber X) and 99TOP with luxury taxis.
Didi ChuXing, founded in 2015, from the merger of two Chinese transport applications, Didi and Kuaidi, is currently the most important Chinese transport application, having acquired Uber’s China operation in August 2016.
The company, which is present in over 400 Chinese cities and provides services to 400 million people, includes companies like Alibaba, Foxconn and Apple among its investors. (macauhub)