State Owned China Post Group is investing in China’s ride hailing giant, Didi Chuxing, for an undisclosed amount, reports e27.
The two companies did not release the exact amount of investment, but focused on describing their strategic cooperation in relying on their respective advantages in the industry. This news comes two weeks after Didi Chuxing’s high profile merge with Uber China.
China Post’s well established presence across China will provide Didi with a more reliable mobility experience for its users. Meanwhile, China Post wishes to leverage emerging digital platforms and business models in order to ‘modernize’ the company.
Bringing state-owned companies on board has been a way to seek stability and utilize resources for startups.
Didi has previously obtained investment from state-owned companies such as China Life, China Merchants Bank and Baic Motor Corporation Ltd.
Didi is still growing, at the end of last year, the car-hailing app attracted 300 million users and 15 million registered drivers in over 400 cities. Over 16 million trips are completed every day on the platform.
Didi’s platform is looking very attractive to investors following Didi’s merge with rival Uber in China. New regulations is also re-shaping the ride hailing industry. In China, car hailing companies are now legal, prior to this, companies such as Didi were operating within the legal gray zone.
China Post and Didi have not elaborated on the details of their collaboration, apart from emphasizing on the ‘strategic partnership’ that will be formed as a result.
A version of this appeared in e27 on August 18. Read the full version here.