China’s Didi scores $500m and a $1.5bn spinoff deal ahead of an early 2019 exit | City A.M.

Chinese ride-hailing service Didi Chuxing today announced $500m (£380.1m) in investment from the US parent of Booking.com, alongside rumours of a potential deal to sell off its car services unit for $1.5bn.

Though the company has yet to comment on any plans for an initial public offering, it is thought that Didi will need to sell the asset-heavy unit to appease new investors before potentially floating in Hong Kong early next year.

Reuters reported sources close to the company as saying long-term investor Softbank is tapped for the deal.

Meanwhile US travel firm Booking Holdings, which oversees popular sites like Booking.com, Kayak and Priceline.com, has formed a strategic partnership with Didi alongside the $500m deal. Users will be able to book taxis from Didi inside Booking apps, and vice versa for Booking’s services.

The news comes as Didi seeks to test Uber’s dominance in the US market, and is expanding heavily outside of China.

It recently launched its services in Mexico, Australia and Japan, after securing $4bn in funding last December that valued the company at $56bn.