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Didi Chuxing, China’s Ride-Hailing Giant, Said to Buy Uber Rival in Brazil
RIO DE JANEIRO — Didi Chuxing, the Chinese ride-sharing company, has agreed to acquire full control of 99 — the main Brazilian rival to Uber and a company in which Didi already holds a stake — for around $600 million, according to three people with knowledge of the transaction.
The all-cash deal changes the competitive landscape for ride-hailing companies, particularly Uber and Didi, the industry’s two biggest players. The companies have been locked in a struggle to dominate as many markets as possible, with fast-growing regions like South America, and Brazil specifically, seen as huge prizes.
Uber and Didi have teamed up in some countries, including China, but Didi’s decision to buy a major Brazilian competitor of Uber puts the companies at loggerheads on a different continent.
The deal also reflects Didi’s effort to accelerate its global footprint outside China. In December, the company raised $4 billion in financing from investors that included the Japanese conglomerate SoftBank, partly to fuel that expansion.
Vinod Sreeharsha reported from Rio de Janeiro and Mike Isaac from San Francisco.
Follow Vinod Sreeharsha and Mike Isaac on Twitter: @VinodSreeharsha and @MikeIsaac
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