Why Didi Chuxing is buying Uber in China
Uber’s quest for global dominance has long seemed unstoppable.
But, like many tech companies before it, the ride-hailing juggernaut has hit a wall in China.
Didi Chuxing, Uber's archrival in China and the largest ride-hailing service in the country, is buying Uber’s China operations.
The deal has a lot of advantages for Uber, which is privately valued at $68 billion. The San Francisco company will receive a $1 billion investment from Didi, according to individuals familiar with the agreement. Uber, which will maintain its brand in China under Didi's ownership, will receive a 17.7 percent stake in Didi, according to a press release sent from Didi. The terms are evidence that Uber put up a strong fight and that both sides had a lot to gain from a partnership.
Cheng Wei, founder and CEO of Didi Chuxing, said, “Didi Chuxing and Uber have learned a great deal from each other over the past two years in China’s burgeoning new economy," he said in the release. "This agreement with Uber will set the mobile transportation industry on a healthier, more sustainable path of growth at a higher level.”
washingtonpost.com
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