Uber China rival Didi said to consider US IPO in 2017

HONG KONG (May 16): Apple Inc may not need to wait that long before it reaps the benefits of investing US$1 billion in Chinese car-hailing service Didi Chuxing.

Didi is targeting an initial public offering in New York next year, according to people familiar with the matter. The timing will depend on how its battle with Uber Technologies Inc in China plays out, said the people, who requested not to be named because the matter is private. Such a move may put the Chinese app ahead of its US rival in going public, with Uber having said it wants to hold off as long as possible.

China’s biggest ride-hailing app is in the process of raising about US$3 billion of funding, including Apple’s US$1 billion contribution, which has swelled the company’s valuation to about US$26 billion, people familiar have said. Didi, already backed by Alibaba Group Holding Ltd and Tencent Holdings Ltd, has reached break even in about half of the 400 Chinese cities it operates in as Uber spends heavily to win both drivers and riders.

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