Tencent Tech, 2/13/15
Numerous sources have told Tencent Tech that the rumored merger of Beijing-based Xiaoju Network Technology and Hangzhou-based Kuaizhi Technology, operators of mobile taxi booking apps Didi Dache and Kuaidi Dache, respectively, will be announced before the Chinese New Year holiday, which begins on February 18.
According to the sources, the companies had originally planned to make an announcement on February 12, although as of now none has been made.
Following the merger, shareholders in Xiaoju will be allocated 52% of the equity in the new company, with the remaining 48% allocated to Kuaizhi shareholders. Sources said that management of the new company will mainly consist of Didi Dache executives, with Didi Dache's founder Cheng Wei taking the role of CEO. The majority of Kuaidi Dache executives will not be retained by the new company.
To date, both parties have denied the rumors.
Editor's Note: For more information on this topic, please see "Rumor: Taxi Hailing Apps Didi Dache, Kuaidi Dache to Merge," MD 2/10/15 issue.