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Asia

After Slaying Uber, Didi Faces Domestic Rivals

Didi Chuxing, the Chinese ride hailing app that defeated Uber in China, is facing fresh challenges from a host of local rivals that are raising money and expanding through alliances.

The latest challenge may be a potential alliance between China’s second largest car rental firm, eHi Car Services, and Shouqi Group, a state-owned taxi and limousine provider that got the first ridesharing license ever in Beijing. Shouqi is considering an equity investment in eHi, people familiar with the talks said. That’s significant because eHi has been a source of cars for Didi drivers. Shouqi didn’t immediately respond to a request for comment.

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The car rental firm is also considering an investment offer made by a consortium of investors that could include a car maker such as Dongfeng Motor, Shanghai’s SAIC Motor or southern China’s Guangzhou Automobile Industry