A taxi driver checks her smartphone with a passenger in Fuzhou, East China's Fujian province, Dec 12, 2014. [Photo/CFP]

China's two largest mobile taxi-hailing app operators Didi Dache and Kuaidi Dache, which have been in head-on competition, jointly announced their strategic merger via their Sina Weibo accounts on Saturday, also Valentine's Day, a western holiday celebrated by many Chinese people.

The new company will run on a co-CEO basis and keep the original structure of their respective human resources. Didi and Kuaidi will continue to run their business parallel, retain their brands, and remain independent.

Didi's CEO Lv Chuanwei said the merger will allow the new company to roll out "more perfect" travel service products and speed up market penetration, drawing on the technology and talent advantages of both companies.

Kuaidi holds a 56.5 percent share of China's taxi-hailing app market, while Didi accounts for 43.3 percent as of December, according to research consultancy Analysys International.

More details of the merger will be made public after China's Lunar New Year holiday, which lasts from Feb 18 to Feb 24.