Uber China gives up fight, will merge with local player, Didi Chuxing

Cash-flush Didi Chuxing has dominated China’s ride-hailing market

Uber Technologies has decided to cooperate rather than compete in China, with the ride-hailing app company set to announce a merger with arch-rival Didi Chuxing, the largest ride-hailing company in the country.

Under the deal, Uber China investors will hold 20 percent stake in Didi Chuxing in a deal that values the combined entity at around US$35 billion, according to reports on Monday. Didi Chuxing will also make a $1 billion investment in Uber Global.

Didi Chuxing, which already had investments from key players such as Alibaba, SoftBank and Tencent, raised $7.3 billion in a financing round in June that included Apple investing in the company.

The Chinese ride-hailing company company said in June it has close to 15 million registered car owners and drivers, serving about 300 million users, with a wide range of mobile technology-based transportation options.

Didi Chuxing had recently set up alliances with other players to counter the growing influence of Uber. Besides a $100 million investment and collaboration with Lyft, which would allow Lyft users visiting China to access Didi Chuxing services from their native apps, the Chinese company has also invested in regional players like India's Ola and Malaysia's GrabTaxi.

In a blog post distributed in advance to some news outlets, Uber CEO Travis Kalanick explained why his company had decided to give up the fight in China.

He wrote that as an entrepreneur, he has learned that being successful is about listening to your head as well as following your heart. “Uber and Didi Chuxing are investing billions of dollars in China and both have yet to turn a profit there,” he added.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?