China Tech Newsletter – June 26, 2015

Didi Kuaidi believes its taxi-hailing apps, which are logging in 3 million daily rides, have 99% market share, according to an e-mail from CEO Cheng Wei to the company’s investors. 1.5 million taxi drivers, three quarters of the total in China, in about 360 Chinese cities have signed up.

Its private car-hailing service has also reached 3 million daily orders, up from 1 million from one month ago. The company estimates that it has an 80% market share in this category. Uber, which currently only offers private car-hailing service in China, said earlier this month that its daily orders had reached one million.

It is believed both Didi Kuaidi and Uber have fake orders problem as they offer high driver subsidies that there are even fake driver accounts sold on Taobao marketplace.

Didi Kuaidi has recently launched ride-sharing services Didi Shunfengche (car-pooling) and Didi Kuaiche (real-time ridesharing) and will roll out commuter bus and on-demand chauffeur services soon.

(The full letter in Chinese)


Tencent-backed online travel service LY.com (a.k.a. Tongcheng or 17U.com) is preparing for IPO on a domestic stock market, the company disclosed yesterday.

LY.com is raising US$300 million to US$400 million in a new funding round with participation from Tencent and real estate giant Wanda Group, according to the company. (via Jiemian)

Apart from Tencent, LY.com’s investors also include Ctrip, a leading online travel service.


ZhenFund, an early stage venture capital firm, is launching an equity crowdfunding platform “Zhengu”.


JD.com announces to establish a joint venture with ZestFinance, a US-based developer of big data underwriting models.

The JV, named JD-ZestFinance Gaia, will provide credit risk evaluation services, based on consumer data generated on JD’s e-commerce platform, to Chinese companies.


Legend Holdings, parent company of Lenovo Group, prices its Hong Kong IPO at HK$42.98 (US$5.5) per H share to raise HK$14.63 billion (US$1.89b). Its shares will begin trading on June 29.

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