Softbank Group Head Is Promoting the Global Merger of Uber and Didi Chuxing, Meituan-Dianping CEO Says

Liao Shumin

(Yicai Global) March 28 — Masayoshi Son, the chief executive and founder of Japanese technology investment giant Softbank Group Corp., is facilitating the global merger of Uber Technologies Inc. and Didi Chuxing, Wang Xing, chief executive of Meituan-Dianping, said yesterday.

Didi Chuxing, developed by Beijing Xiaoju Technology Co., always adopts the capital-centered strategy, while Tencent Holdings Ltd.-backed Meituan-Dianping will continue to put customers first, he added, tech.sina.com.cn reported.

Son invests in both Didi Chuxing and Uber and is the largest shareholder in the latter. Neither Didi Chuxing nor Uber has responded to the matter as of now. Meituan-Dianping and Didi Chuxing are locked in fierce battles in the car-hailing and food delivery fields. Meituan Dache, which operates in Shanghai and nearby Nanjing, Jiangsu province, has obtained a license for a car-hailing service in Hangzhou. Meituan-Dianping and world’s largest car-hailing provider Didi Chuxing Technology Co. have been at loggerheads after announcing plans to step into each other’s respective primary business areas. As Meituan-Dianping moves into ride-hailing, Didi is branching out into meal delivery services, sending freshly-prepared food from restaurants to customers.

Meituan Dache has already obtained a one-third market share in the cities in which it is present, Wang said on the sidelines of the China Development Forum that ran from March 24 to 26 in Beijing. Meituan Dache has a competitive advantage over Didi Chuxing thanks to its more comprehensive hotel and food delivery services, Wang added. Didi Chuxing is also working on its position in response. CNY10 billion (USD1.6 billion) in asset-backed securities (ABS) financing recently approved will be used to purchase new vehicles for partners. Didi Chuxing’s Didi Waimai, which will reportedly debut on April 1, will establish its presence in several cities.