Travel giant Booking invests $500M in Chinese ride-hailing firm Didi Chuxing
Didi Chuxing, China’s largest ride-hailing company, has pulled in some strategic capital after Booking Holdings invested $500 million into its business.
The deal will see Booking Holdings — which was formerly known as Priceline — work closely with Didi to offer its on-demand car services through its Booking.com apps via an integration. Likewise, Didi customers will have the option to book hotels through Booking.com and its sister site Agoda.
The deal isn’t about money. Didi has said publicly that it has multiple billions of US dollars on its balance sheet, thanks to a gigantic $4 billion funding round that closed at the end of 2017 and a history of raising big in recent years.
Instead, the tie-in helps on a strategic level.
Besides Booking.com and Agoda, Booking also operates Kayak, Priceline.com, Rentacars.com and OpenTable, all of which makes it a powerful ally for Didi. That’s particularly important since the Chinese firm is in global expansion mode, having launched services in Mexico, Australia and Taiwan this year. Beyond those three, it acquired local ride-hailing company 99 in Brazil and announced plans to roll into Japan.
Beyond boosting a brand and consumer touchpoints, linking up with travel companies makes sense as ride-hailing goes from simply ride-hailing to become a de facto platform for travel between both longer haul (flights) and short distance (public transport) trips. That explains why Didi has doubled down on dock-less bikes and other transportation modes.
“Building on its leadership and expertise in the global online travel market, Booking is championing a digital revolution of travel experience. We look forward to seamlessly connecting every segment of the journey and improving everyone’s traveling experience through more collaborative innovation with the Booking brands on product, technology and market development,” said Stephen Zhu, VP of strategy for Didi, in a statement.