Didi Chuxing has invested in Careem, a Middle Eastern Uber rival, which is reportedly valued at more than $1 billion. The deal follows the Chinese ridehailing giant's backing of Taxify, which operates in Europe and Africa, just a week ago.
Didi, by far China's largest ridehailing company, seems determined to go head-to-head with Uber, as its US rival tries to instigate cultural change to the business and seeks a new CEO following the departure of Travis Kalanick.
Uber's woes are also illustrated by some of the company’s recent strategic moves. Last month it announced the merger of its ridesharing and UberEATS businesses in Russia and several other Eastern European countries with Yandex.Taxi.
The deal has been widely seen as evidence that the company is beginning to consider its options when facing a local rival with strong financial backers. Indeed, Uber's Russian move bears the hallmark of its Chinese business sale to Didi last year.
Recent reports suggest that the last few months have also impacted Uber’s valuation, which last year reached $68 billion, but could now have dropped to as low as $40 billion.