This ride-sharing app is crushing Uber in China

Benjamin SnyderBy Benjamin SnyderManaging Editor
Benjamin SnyderManaging Editor

Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

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A smartphone shows the two apps, Kuaidi Dache -- part-owned by Alibaba -- and Didi Dache -- backed by Tencent.
Photograph by AFP/Getty Images

Ride-sharing app Didi Kuaidi is posting big gains over rival Uber in China. In fact, the company boasts having three times more car trips each day than its American competitor.

Reuters reported that Didi Kuaidi has 80% of the ridesharing market in China. Its parent company, Xiaoju Kuaizhi, is expected to raise more than $1.5 billion from investors, although it could nab over $2 billion.

The value of the company is around the $15 billion, according to Reuters, while Uber is valued at $40 billion.

“In overall rides, we now have 10x the volume of our closest competitor in China and at least 3x its global volume,” according to a Didi Kuaidi letter to shareholders that Reuters obtained. “With advantages in scale and operational efficiency, we can provide more ride orders to drivers than competitors.”

But how many rides are each responsible for? Didi Kuaidi says it has three million car requests each day, while Uber said it does one million.

The publication reported that Didi Kuaidi has backing from both Alibaba(BABA) and Tencent, two of China’s largest companies.

With whispers of Uber going public growing louder, the company recently entered a funding round in China led by investment group Hillhouse Capital. It could reach about $1 billion.