Sources have revealed that Uber has decided to merge their business unit in China with the country’s leading taxi-booking service, Didi Chuxing Technology Co.


Uber has lost a lot of money by trying to claim dominance on the digital transportation front in China, while Didi has left no stones unturned to give the American taxi service serious competition. Didi had earlier agreed to team up with India’s Ola services, Southeast Asia’s Grab and the U.S.A’s Lyft to create a composite pressure on Uber’s China operations. According to some sources, Uber has invested more than $2 billion in their China business alone since their time in the country to attract drivers and customers.

The valuation of the combined business is reported to be $ 35 billion, though details of the deal have not yet been revealed. Travis Kalanick, CEO of Uber has written positively about this deal on a blog: “I have no doubt that Uber China and Didi Chuxing will be stronger together”.

According to Kalanick, both companies have lost a great deal of money in trying to exert dominance in the ride-hailing sector in China, a business that has recently been legalized in the country. Kalanick wrote in the blog post. “Getting to profitability is the only way to build a sustainable business that can best serve Chinese riders, drivers and cities over the long term”. As part of the rather complicated deal, Didi will reportedly invest $1 billion in Uber at a valuation of $68 billion. As of now, Uber will continue to operate in China as a separate brand under Didi.


Investors in Uber China were being affected by the company’s struggle to gain command over the local Chinese market and had been insisting that the company sell off its business in the country. As a result of the impending deal, they will receive a 20 percent stake in the rival company which has been valued at $28 billion. The deal is being hailed as a positive achievement for Uber, who having foregone its independent operations in China, is slated to become the largest stakeholder in Didi Chuxing. But some experts are of the opinion that the deal is a victory for Didi which goes to show that the ride-hailing business favours domestic companies to foreign-operated ones.

A formal announcement is expected to be made by the companies at their earliest.

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