Published: Wed, August 02, 2017
World | By Paul Elliott

A Chinese ride-sharing company invests in Estonia's Taxify

A Chinese ride-sharing company invests in Estonia's Taxify

Taxify has announced a new strategic partnership with Didi Chuxing, the world's biggest mobile transportation platform. The company would not say how much Didi's investment is.

The partnership is likely to be aimed directly at tackling Uber's current market share with both Lyft and Taxify acting as direct competitors.

Since its founding 3-1/2 years ago, Taxify mostly has funded itself from operations, having only ever raised 2 million euros in outside financing from local venture capitalists and angel funders, Chief Executive Markus Villig told Reuters recently.

Launched in Estonia in 2013, Taxify offers taxi- and private car-hailing services to over 2.5 million users in major hubs across 18 countries, including Hungary, Romania, the Baltic States, South Africa, Nigeria and Kenya.

Uber operates in almost 600 cities in 70 countries and reported it had fare revenues around US$20 billion past year.

Uber may face serious test in the face of a Chinese company. DiDi is backed by Chinese Internet giants Alibaba and Tencent and Japan's SoftBank Group, among others.

The investment amount was undisclosed. The company famously pushed Uber out of China past year (and bought its rival's business in the country) and gained a strong foot in the U.S. market by investing in Lyft, in India through Ola and in Southeast Asia through Grab.

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