Careem receives backing from Uber’s rival DiDi
Both companies turn up the heat on mutual rival Uber
DiDi Chuxing, China’s largest ride-hailing firm has invested in Middle East online taxi service Careem, Reuters has reported.
Careem would not disclose the size of the investment.
The two companies said they would cooperate on smart transport technology, product development and operations, Reuters said.
Mudassir Sheikha, CEO and co-founder of Careem, told ITP.net the resources and synergies from this alliance will be directed towards new opportunities for growth, market expansion and innovation. “Didi Chuxing’s decision to buy into Careem’s growth story heralds a game-changing strategic alliance between two of the world’s fastest-growing ride-hailing services, who are leaders in their respective markets,” Sheikha added.
Careem has in the recent past attracted more than $500m in funding from a range of investors, including $150m from Saudi Prince Alwaleed bin Talal.
The recent tie up will up the ante in both Careem and DiDi's rivalry with industry pioneer Uber.
Dubai-based Careem operates in 80 cities in the Middle East, North Africa and Asia, with 12 million customers. Apart from its home Chinese market where it dominates, DiDi has been an expansion binge lately announcing a strategic partnership on August 1st with Taxify, a fast-growing ridesharing company in Europe and Africa. It has also invested in Grab in Asia, 99 in Brazil. And is cooperating with Uber’s major U.S. competitor Lyft, global car-rental firm Avis Budget Group, and India's ride-hailing company Ola.