Drops announced a merger with fast, chengwei Lv Chuanwei co-ceo

in recent days rumors of a taxi home two application service provider a merger has finally come true, made a similar youku potatoes again the integration of the case, the direct competitors have finally success hand in hand.

a taxi and fast taxi jointly issued a statement today, announced that the two strategic merger. Both sides determine appropriate time after the Spring Festival, held a press conference, announced the concrete issues.

the new company will implement Co – system of chief executive, drops a taxi CEO chengwei and fast taxi CEO Lv Chuanwei as co-ceo at the same time. The two companies in personnel structure remains the same, parallel development, business continued to independence and will retain their brands and business. Both sides now has yet to announce further consolidation plan, but is expected to take a long time in stages.

drops a taxi CEO chengwei prospects the vision of the new company. , he says, the rapid development of China mobile travel not only to maximize energy savings, save the ground transportation resources, and fundamentally to solve urban traffic congestion. And, more importantly, through mobile travel platform, people begin to establish a trust relationship between people, and in the broadest sense, to realize the establishment of social credit system.

fast taxi CEO Lv Chuanwei, said after the merger, both sides will focus on the advantages of the two companies technology, products, talent, roll out more perfect travel service products, further accelerate the speed of market development, to produce more with their effects, improve the overall competitiveness, more actively and effectively promote the development of the whole mobile travel industry.

it was revealed that drops a taxi and quickly take a taxi over a long period of time in the price war, the company’s management after repeated communication and exchanges, and ultimately reach a consensus, decided to merge the two companies make strategic.

at present, the drops and fast two shareholders without overlapping. Drops in major investors is mainly composed of tencent, citic, cic, temasek, etc; And fast ways mainly by alibaba, matrix partners, tiger funds and softbank China, etc. Two months ago, drops and fast also announced a new round of financing, respectively, the amount of $700 million and $600 million respectively, add ammunition for the subsequent expansion.

the undisclosed stake and the new company valuations. According to the Wall Street journal previously reported, drops a taxi and quickly combined with taxi valuation or will be $6 billion.

when both sides explained merger, points out that “car field is faced with all kinds of new changes and new forces, including driving, carpooling, bus, subway, and other areas of the broader mobile travel, both sides faced with various challenges and risks. As the pioneer of the industry, more need to gather the mobile Internet elite talent, comply with the demand of market and users to develop independently.”

in the previous development process, the drops and fast through a wide range of subsidies to get the user and market share. Two after the merger, the combined will no longer appear the phenomenon of large area burn, the future development of the two will gradually become the norm, subsidies should be reduced gradually.