State-owned China Post Group announced on Tuesday that it would invest in China’s ride-hailing giant Didi Chuxing after acquiring Uber China.
The two parties did not disclose the exact amount of investment, instead describing their strategic cooperation.
The two companies said they will rely on their advantages in the industry, to integrate resources and combine operational experience.
“China Post Group is a well established brand in China, and its has service chains across the country,” said Didi’s Founder and CEO Cheng Wei. “Through cooperating with it, Didi will develop a more reliable, and enriched mobility experience for our users.”
“Internet related industries have grown fast,” said Li Guohua, general manager of China Post Group, “Leveraging emerging platforms in innovative technology and business models, our company will seek to transform from traditional business.”
Bringing state-owned companies on board has been a way to seek stable and massive domestic resources, and networks for startups.
Including this current cooperation, Didi has obtained investment from several state-owned companies, including China Life, China Merchants Bank, and Baic Motor Corporation Ltd.
Data from the end of 2015 shows that Didi has attracted 300 million registered users and 15 million registered drivers, in over 400 cities. Over 16 million trips are completed every day on its platform.
China Post Group was No. 105 on the Fortune Global 500 list this year.
(Top photo from Baidu Images)