Kuaidi Dache and Didi Dache said they would merge to become the largest taxi-hailing company in China. Financial terms were not disclosed.
The two companies are both heavily funded and very popular. Kuaidi Dache recently raised $600 million led by SoftBank, while Didi Dache raised $700 million from Tencent and others. Didi Dache is tightly integrated with Tencent’s WeChat app.
Meanwhile, rival Chinese Internet giant Baidu in December made a significant investment in Uber.
An emailed press statement said the terms of the merger make Wei Cheng of Didi Dache and Dexter Chuanwei Lu of Kuaidi Dache co-CEOs of the combined company, which will continue to operate independently. They said they would give more details after Chinese New Year next week.
The Wall Street Journal had earlier reported on the merger talks.
This article originally appeared on Recode.net.