China's Answer To Uber, Didi Kuaidi, Valued At $20B

According to a report from Dow Jones, Uber's main competitor in China, Didi Kuaidi Joint Co, is looking to raise around $1 billion at a valuation of more than $20 billion. Dow Jones, citing "people familiar with the situation," reported that Didi Kuaidi is looking to raise funds as Uber's subsidiary in China, UberChina, continues to gain traction in the company. The report noted that both Didi Kuaidi and UberChina are backed by local partners with "deep pockets" and are handing out subsidies to attract drivers and riders. However, Didi Kuaidi already dominates the country's taxi-hailing segment. Didi Kuaidi raised $3 billion from investors last September at a $16 billion valuation while UberChina raised $1.2 billion last year at an approximate $8 billion valuation. In fact, Didi Kuaidi's backers include Tencent Holdings and

while UberChina's backers include

. The competitive landscape is intense as Didi Kuaidi benefits from Tencent's WeChat messaging app which boasts 650 million users and a standard feature on the app is a button that directs users towards Didi Kuaidi's service. On the other hand, Alibaba's online-payment service, Alipay, is offered to both Didi Kuaidi and UberChina.