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Baidu invests in Uber

December 12, 2014

Chinese search engine Baidu is willing to invest heavily in US taxi app Uber, state media have reported. Uber is also to get access to Baidu's online resources which will help it build a bigger market in mainland China.

https://p.dw.com/p/1E3CX
Symbolbild zu Uber Verbot in Indien 07.12.2014
Image: AFP/Getty Images/T. Bahar

The Chinese equivalent to Google, Baidu, would make a strategic investment of up to $600 million (482 million euros) in the popular but controversial US taxi app Uber, Chinese media said Friday.

Uber has already been available in China's commercial hub, Shanghai, since August 2013 and has since expanded into Beijing, Tianjin and other cities and regions.

But despite its efforts to lure more customers in the Asian nation, the US shooting star is still dwarfed by the country's two major taxi-haling apps, Kuaidi Dache and Didi Dache.

Opening up a new battle front

The planned alliance between Uber and Baidu will turn the latter two's already fierce competition into a three-way battle.

Baidu's commitment comes as Uber is embroiled in several controversies. Among other things, it complied to stop operating in New Delhi after an Indian woman said she was raped by one of its drivers.

It has also drawn criticism from established taxi businesses in many of the 50 countries where it is active. It has been ruled illegal in some jurisdictions over concerns it could distort competition on the ground, neglect privacy concerns and passenger transportation standards.

hg/cjc (AFP, Reuters)