Yongche steps up drive to do battle with Didi

Didi Chuxing and Uber China may not have an easy victory in China, even though their newly announced merger is expected by analysts to create a dominant player in the country's rapidly growing ride-hailing market.

Under the deal, Didi will acquire Uber China while Uber Technologies Inc and Uber China's other shareholders will receive a 20 percent shareholding in the combined company.

Yongche Inc, which has immediately become the No 2 ride-hailing player in China after the tie-up between Didi and Uber, said on Tuesday that it will soon launch a very lucrative incentive program to gear up the competition in attracting users.