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 newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
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

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?