August 3, 2016 Comments Off on Uber China to merge with Didi Chuxing
After suffering huge losses in China, Uber China is finally surrendering its operations to its homegrown rival, Didi Chuxing. The deal, which will create a merged company worth around $35 billion, will end one of the ride-hailing industry’s biggest rivalries. According to sources, the terms of the deal includes Didi acquiring Uber’s brand, business and data in China, whilst Uber investors will reportedly hold a 20% stake of the combined company. Didi will also invest $1 billion in Uber’s global company as part of the deal. According to analysts, this deal allows Uber to focus on other regions that it operates in, new product development such as UberEats and a possible IPO down the track.
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