Didi, the Chinese ride-hailing juggernaut, has just taken a stake in yet another ride-hailing peer, this time in Brazil. This extends its reach into Latin America, Uber’s third largest market.
Recode reported that Didi led a $100 million investing round with company 99, which was formerly known as 99Taxis. Didi is also getting seat on the latter’s board of directors. Exact terms of the investment (or what the ownership stake might be) were not disclosed.
The latest investment, said the site, comes after Didi made investments in several other ride-hailing firms, including Lyft; Ola, based in India; and Grab, which operates in Southeast Asia. Recode noted that the aforementioned companies operate as a global partnership. But, added the site, it is not yet apparent whether the latest deal, with 99, means the Brazilian firm has joined that partnership.
In a previous interview with Recode, 99’s CEO, Peter Fernandez, said that the focus for the time being will be on Brazil, telling the site in April that “Brazil is a must-win market in the world. It has the world’s fifth-largest population. From my perspective, it’s a much more important priority for the company to win in Brazil than it is to peanut-butter our operations across the region.”
The model there is that drivers can offer discounted fares in tough economic times (and Brazil is in the midst of a tough recession).
In terms of the competitive landscape, Didi’s stake in 99 comes after Uber sold its own Chinese operations to Didi. Recode noted that in the wake of the Uber China acquisition, the international linkage of several ride-hailing firms “has fractured.” By way of example, Lyft said it was examining its partnership in Didi after the Uber China announcement.
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