Ride-hailing investor graph. Delphi goes to Singapore. An interview with John Krafcik.
The dog days of August have been anything but, with this week bringing upheavals in ride-hailing with major implications for all the top players in the space, not to mention the laundry list of investors backing them.
The impact of Didi Chuxing’s acquisition of Uber’s China unit will continue to be felt for some time. The two had used their unprecedented war chests to battle for share in the world’s most populous country; Uber China is said to have spent up to $1B annually since its market entry two years ago.
Investors on both sides are relieved to see this money furnace cooling, and with this move Uber has turned away from its previously hardline philosophy of outspend-at-all-costs. It retreats with a 17.7% stake in the new Didi, and its capital may now be redirected towards other regions and long-term initiatives (such as its $500M precision mapping project, also reported this week).
This move brings uncertainty to Didi’s ex-Uber alliance with Grab, Ola, and Lyft, though the deal was immediately followed by reports that Didi would join SoftBank to inject fresh funding into Singapore-based Grab. Ironically, through Didi’s investments, Uber is now linked to each of its other opponents.