Taxi App Wars: Didi Kuaidi Invests on Promotions, Goes Head-to-Head With Uber, Yidao Yangchae

China's biggest taxi-hailing company Didi Kuaidi plans a dramatic expansion that will help bring more riders and fend off competitors by investing $161.39 million or 1 billion yuan for marketing and promotions.

Aside from basic cab calling, Didi Kuadi app will make more choices available to its commuting customers, such as carpooling, premium cars, service for passengers with special needs, and designated drivers, the firm said in a statement.

"We aim to serve 30 million commuters per day in three years", said Cheng Wei, CEO of Didi Kuadi.

When the target is achieved, Didi Kuadi, backed by rivals Alibaba Group Holding Ltd and Tencent Holdings Ltd, could beat its major competitors in China.These rivals include Uber, the $40 billion US start-up supported by Chinese search leader Baidu Inc., and local firm Yidao Yongche.

Didi Kuaidi is the world's largest smartphone-based transport service, valued at roughly $6 billion in a recent merger. The firm already dominates China's taxi hailing market.

Alibaba and Tencent together have a roughly 23 percent stake in Didi Kuaidi, with each owning between 10 and 13 percent, President Liu Qing told media in Beijing.

CEO Cheng Wei also announced Didi Kuaidi's plan to spend more on marketing this year, more than what was spent last year during an intense pre-merger rivalry between Didi and Kuaid whichi saw hundreds of millions of dollars spent on subsidies and advertising to attract customers.

Spending money is not a concern for the company, with its wealthy backers, Liu added.

Didi Kuaidi is moving beyond calling cabs, pitting it squarely against Uber and Yidao Yongche, which use private cars rather than letting people call licensed taxis.

Utilizing apps to hire private cars has faced serious regulatory issues around the world, including China.