Didi Dache and Kuaidi Dache, China’s two largest taxi-hailing apps, have confirmed that they will merge to become the largest taxi app company in China. The two firms will maintain their brands and independent business operations with their personnel structures unchanged after merger. Cheng Wei and Lu Chuanwei, CEOs of Didi Dache and Kuaidi Dache respectively, will run the consolidated company as co-CEOs.

China’s taxi app market has boomed since 2013, with scores of new startups entering the market. In fierce competition for market share, taxi app startups have burned huge amounts of cash to attract passengers and taxi drivers through cash bonuses, mobile data plans, free mobile chargers, and so on. The intense competition (and high cash burn rate) has made it difficult for small players to survive.

The two industry leader, Didi Dache and Kuaidi Dache, stood out from the crowd. They have received numerous financing rounds from multiple investors to fund their struggle to become a dominant player. Tencent and Alibaba, two of the best-funded internet giants in China, are respectively the lead investors in Didi Dache and Kuaidi Dache. In addition to capital support, Didi has been able to integrate its service into Tencent’s WeChat and Kuaidi into Alibaba’s Alipay, to gain access to more users.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.