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Uber Is Letting Its Rival Take Over China

Uber's Chinese operations will merge with Didi Chuxing.
Posted at 8:52 AM, Aug 01, 2016

Uber is bowing out in China.

The San Francisco-based ride-hailing company is letting its Chinese operations merge with its main rival in that region –– Didi Chuxing. 

The new, combined company is expected to be worth $35 billion, and Uber China will still own roughly 20 percent of the operations. That seems like a pretty good deal, since it was only controlling, at most, 20 percent of the ride-hailing market there.  

Plus, Didi is going to make a $1 billion investment in Uber's other, more profitable operations. 

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Uber has reportedly lost $2 billion in China already and was spending about $1 billion each year trying to capture more of the market. 

Meanwhile, Didi formed a partnership with Uber's American rival, Lyft, and received a major investment from Apple –– despite the fact that Uber's and Apple's CEOs are said to be friends. 

China just legalized app-based ride-hailing services last week. The merger is still waiting on approval from China's government.

This video includes clips from UberLyftCCTV and France 24. Music provided courtesy of APM Music.