Travel company Booking Holdings invested $500 million in taxi hailing app service provider Didi Chuxing as part of a strategic partnership which will see the two parties integrate some of their services.
Brands of Booking Holdings will offer on-demand car services through their apps via Didi, while Didi’s customers will be able to book hotels through reservation services Booking.com and Agoda.
Booking Holdings also has restaurant reservation and rental car services under its umbrella, which have potential for future integration.
Stephen Zhu, VP for strategy at Didi Chuxing, said: “Booking is championing a digital revolution of travel experience. We look forward to seamlessly connecting every segment of the journey and improving everyone’s travelling experience through more collaborative innovation with the Booking brands on product, technology and market development.”
Todd Henrich, SVP and head of corporate development for Booking Holdings added: “Didi has clear advantages in technology and scale in the shared mobility industry.”
Booking Holdings’ brands are available in around 220 countries, while Didi serves 550 million users in China, Australia, South America and Japan.
Meanwhile Reuters reported Didi is looking to spin-off its car services unit in a deal worth up to $1.5 billion, believing the heavy-asset business to be a disadvantage ahead of an expected IPO.
The unit was launched in April, bringing together its car rental, sales, maintenance, sharing and fuel services businesses.