Daily Management Review

Booking Holdings Invests ‘$500 million’ In Didi


In an “aggressive” overseas expansion plans Didi and Booking Holdings enter into in an agreement enabling the users of the either services to avail the other’s services.

The “Booking Holdings Inc”, a travel firm of the U.S. has invested “$500 million” on Didi Chuxing, the ridesharing app of China. This is part of the “aggressive plan” of exploring new markets beyond the Chinese borders.
In a joint statement, the investment news was announced on Tuesday, July 17 2018. However, further details are still not available, while there are expectations of Didi launching an IPO in sometimes, while the current value of it is at “$56 billion”. Earlier this year, Priceline Group Inc changed its name to Booking Holdings, whereby the agreement between both the companies will make a provision for the users to hail Didi vehicles.
At present, Didi is neck deep into “several new overseas” expansion, while hoping to challenge Uber Technologies Inc. Recently, Didi’s services were launched in “Mexico, Australia and Japan” as the company received “$4 billion” of funding last December. Didi earmarked the sum for embarking in new market territories besides venturing into AI.
Furthermore, Didi has also invested in “Brazil’s 99, India’s Ola, Singapore’s Grab and U.S.-based Lyft”, mainly the competitors of Uber. The current value of Booking Holdings is “$97 billion” while it manages several “most popular travel booking sites” in the world, like “Bookings.com, Agoda.com, KAYAK and Priceline.com”.
In fact, Didi users will also be able access the services of Booking Holdings’ services through the former. According to Reuters:
“China’s travel booking market is already heavily dominated by local firms, including Ctrip.com International Ltd (CTRP.O), which earlier this year signaled its intention to enter the ride-hailing market, posing a potential challenge to Didi”.