Brazilian ride-hailing service 99 raises $100M from SoftBank to better compete in a region where, a source says, Uber's margins are one of their highest
Context & Ripple Effects
This round extends the January 2017 $100M investment Didi led in 99, which put a Didi executive on the board — so within five months, 99 has stacked two $100M checks from investors aligned against Uber. The Bloomberg report's key detail is the motive: a source says Uber's margins are among its highest in this region, meaning 99 is being capitalized specifically to attack a market where the incumbent makes money.
The arc that follows validates the play: by January 2018 Didi was in talks to buy 99 outright, and went on to confirm an acquisition reported around $600M — while Uber disclosed Brazil as its second-largest market with a billion rides and, per its own execs, profitability.
First-order effects
- 99 gets a fresh $100M war chest on top of Didi's earlier round, letting it subsidize rides and recruit drivers directly against Uber in Brazil and wider Latin America.
- SoftBank takes a direct stake in the regional challenger, positioning itself alongside Didi in any future outcome for 99.
Second-order effects
- Uber's profitable Brazil operation — the market where it claims some of its best margins — comes under price pressure from a rival newly armed with SoftBank and Didi capital.
- The funding accelerates 99 toward consolidation rather than independence: within months of this round, Didi moved from board seat to reported takeover talks valuing 99 at $1B.
Third-order effects
- Latin American ride-hailing is structuring into a contest between Chinese-backed platforms (Didi via 99) and the US incumbent, with SoftBank's capital deciding which challengers can sustain subsidy wars in Uber's most profitable markets.
- If the pattern holds, well-funded local champions become acquisition targets rather than long-term independents — a playbook Didi repeated across regions, and one that later left Uber and Didi's 99 competing head-to-head in Brazil even as city-built alternatives like Taxi.Rio emerged.
The trend: SoftBank and Didi are using staged investments in regional challengers like 99 to contest the emerging-market strongholds where Uber earns its best margins.