Didi Dache and Kuaidi Dache, China's two most popular taxi-hailing apps, announced on the Valentine's Day that they would hook up to launch one of the world's biggest mobile platforms for on-demand transportation services.

 

Subsidies for both taxi drivers and passengers, a key tactic the firms have applied to rope in app users, will inevitably fall following the merger, analysts said, with some users stating that they might uninstall the apps if the subsidies gradually taper off.

The brands will be retained and the firms would operate independently, said a joint announcement posted Saturday on the public WeChat account of Didi Dache.

 

The announcement came just a few days after rumors of a tie-up flooded a variety of media outlets but were soon denied as untrue by Didi.

 

Didi and Kuaidi, backed by Chinese Internet behemoth Tencent Holdings and e-commerce leviathan Alibaba Group Holding, have been embroiled in a money burning battle to vie for users in the world's biggest smartphone market. 

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