Earlier today, there were rumors about Uber China’s possible acquisition by its biggest rival Didi Chuxing. Now, Didi Chuxing has confirmed this deal It has bought Uber’s separate business in China. Uber also published a confirmation blog post.
Didi Chuxing will keep Uber China as the separate brand will retain its app and business operations. It will only merge the backend which includes managerial and technological experience.
“I have no doubt that Uber China and Didi Chuxing will be stronger together. That’s why I’m so excited about our future, both in China—a country which has been incredibly open to innovation in our industry—and the rest of the world, where ridesharing is increasingly becoming a credible alternative to car ownership,” Travis Kalanick, CEO and Co-Founder, Uber.
Didi didn’t confirm the amount it paid for the deal. It only confirmed that Uber will be given a 5.89 percent stake in the newly merged entity, with preferential equity that is equal to a 17.7 percent economic interest in Didi Chuxing. Existing investors of Uber China will get 2.3 percent of the new business.
Most recently Uber China was valued around $7 billion while Didi was valued at $28 billion.
Now think about future of this taxi business. Didi is an investor in all Asian rivals of Uber which includes Ola (India) and Grab (Southeast Asia).
