Is merged taxi app firm a monopoly?
China Daily | Updated: 2015-02-16 08:00
AFTER A WHOLE YEAR of fierce competition, Beijing-based Didi Dache and Hangzhou-based Kuaidi Dache, China's two major taxi-hailing apps, announced a merger on Saturday. The new company now has a 90 percent of market share, and analysts say it could be valued at $6 billion. Comments:
It is natural to ask: will the new company become a monopoly? It is still too early to worry about the possibility, because neither Didi nor Kuaidi has a successful profit model, and both were spending money keeping their market share. Actually, the whole taxi-calling app industry is still young and needs further development to truly dominate the market.
163.com, Feb 15
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