By Gillian Wong
Chinese Internet giant Baidu Inc. will invest in ride-hailing
app Uber Technologies Inc., a person familiar with the matter said
Friday, in a move that could help the U.S. startup's business in
China.
Details of the investment amount weren't immediately known.
Baidu said it plans to announce an investment in a U.S. startup
on Dec. 17, but didn't provide further details.
The Baidu investment will give the San Francisco-based company a
strong partner in a market that it entered last year but hasn't
gained much traction in due to stronger local competitors.
Baidu competes with Internet giant Alibaba Group Holding Ltd.,
which has an investment in taxi-hailing app Kuadi Dache. Tencent
Holding Ltd. also has an investment in cab-booking app Didi Dache,
which said Tuesday it raised more than $700 million in its latest
funding round led by Singapore state investment firm Temasek
Holdings Pte. Ltd.
Car-booking apps are just one part of China's quickly evolving
Internet-services market, which is drawing competitors seeking to
win over the country's 500 million smartphone-wielding consumers
and the revenue they control.
For Baidu, the deal could allow China's dominant search engine
to expand its mobile Internet offerings to attract more users.
Baidu has a popular map application that could be able to offer
users the ability to book Uber rides.
Earlier this month, Uber raised $1.2 billion in a new round of
funding that valued the company at $41 billion.
But Uber has also had its share of difficulties as it seeks to
expand. Allegations that an Uber driver raped a woman in India last
weekend has triggered a nationwide ban on smartphone-enabled taxi
services in India that could stifle the company's ability to
operate in its largest market outside of the U.S.
Also this week, Thailand barred all app-based taxi service
operators who use personal vehicles; a Spanish judge ordered a
temporary halt to the company's operations in the country; and the
city of Portland, Ore., issued a cease-and-desist order and filed a
lawsuit against Uber.
Uber also faces a legal challenge in its own backyard. On
Tuesday, the district attorneys of San Francisco and Los Angeles
sued Uber for allegedly misleading consumers and said they are
seeking a permanent injunction of the business until it complies
with California law. The suit alleges, among other issues, that
Uber is misleading customers into believing it screens out drivers
who have committed criminal offenses.
News of the Uber investment was first reported by Chinese state
media China National Radio.
Access Investor Kit for Baidu, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0567521085
Subscribe to WSJ: http://online.wsj.com?mod=djnwires