Didi Kuaidi to invest in Ola
The Indian taxi cab market seems to be heading to a position where only two major players will be competing for all the users. Uber and Ola comtinue raising money. Uber already has had the Who’s Who of the world’s top investors put their stakes in the venture to expand worldwide rapidly. One of the few places where this app has not been able to become the largest player is China, where Didi Kuaidi is the largest taxi aggregator app. Now this AliBaba backed company is investing in Ola. It is to be noted that they had earlier invested in Lyft – Uber’s main rival in the US.
As reported earlier, Ola is close to complete a huge funding round of the $500 million.
The strategy is obvious, build as big a war chest as possible because you never know when the liquidity is wiped out of the market. Further this money and the PR associated with it helps these ventures to hire top talent wherever they go.
Ola Founders have already been listed in the richest Indian list. And despite the frequent court cases and regulatory problems that both these firms are subjected to, the growth will continue at high pace in the near future.