The announcement comes at a time when Didi is being investigated by Chinese Ministry of Commerce for a possible violation of antitrust laws related to its purchase of Uber China
Taiwanese electronics manufacturer Foxconn has invested US$119.9 million in Chinese ride-hailing startup Didi Chuxing. The deal could value the company at around US$33.7 billion, according to Reuters.
The announcement comes at a time when Didi is being investigated by Chinese Ministry of Commerce for a possible violation of antitrust laws related to its purchase of Uber China.
A Didi spokesperson told the publication that the two companies now “are exploring possibilities but there are no concrete plans yet.
The funding comes less than a month after state-owned China Post Group announced an investment in Didi.
Earlier, Uber China and Didi had announced a merger in a deal valued at US$35 billion. For Didi’s part, it will invest US$1 billion in Uber China at a US$68 billion valuation. Uber China will still use its own app.
As per a report by New York Times the Didi-Uber China merger has put Lyft in a very tough position. The US-based ride-hailing service that aligned themselves strongly with Didi both financially and strategically now has to come to terms with the fact that their largest ally is now in cohorts with their largest competitor Uber.
As per this report, Lyft is now looking for a buyer.
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