AAA Taxi app frenzy drives funding for Kuaidi Dache

Taxi app frenzy drives funding for Kuaidi Dache

China-based taxi hailing app Kuaidi Dache has raised almost $800m in a series D round featuring e-commerce company Alibaba and investment firm Tiger Fund, China Travel News has reported.

The round, raised at a $4bn valuation according to an undisclosed source, reportedly also included two unnamed funds.

Kuaidi Dache secured $100m from Alibaba, Matrix Partners and New Horizon Fund in spring last year, with online car rental agency eHi investing $25m to secure an 8.4% stake in the company. China Travel News stated that Kuaidi Dache subsequently also closed a Tiger Fund-backed series C round in September.

The funding, which follows a $700m series D round closed by local competitor Didi Dache last month, will be used to further develop its service in China.

However, both companies could face regulatory difficulties as local governments begin to crack down on the industry.

Taxi drivers in the city of Shenyang went on strike on Sunday to protest the newcomers, and municipal traffic departments in Shenyang, Shanghai, Nanjing and Zibo have all recently threatened to crack down on unlicensed private drivers.

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