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

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.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments