Uber China has finally heeded to this saying;”If you cannot beat them, then join them”
Chinese ride sharing company Didi Chuxing is merging with Uber China under a $35 billion deal that will see the rivals — worth $28 billion and $7 billion, respectively — join forces.
The truce brings to an end a bruising battle between the two companies for leadership in China’s fast-growing ride-hailing market. Uber has been spending at least $1 billion a year to gain ground in China, while Didi offered its own subsidies to drivers and riders to build its business.
Didi will buy Uber’s brand, business and data in the country, the Chinese company said in a statement. Uber Technologies and Uber China’s other shareholders, including search giant Baidu Inc., will receive a 20 percent economic stake in the combined company. Didi founder Cheng Wei and Uber Chief Executive Officer Travis Kalanick will join each other’s boards.
Last year,Didi invested $100 million in Lyft, Uber’s main rival in the US. It also formed an alliance with Lyft, India’s ride service Ola, and Southeast Asia’s ride sharing startup Grab in an effort to compete with Uber’s global dominance.
According to Didi, it conducts more than 11 million rides each day, controlling 87 percent of the Chinese ride sharing market. It surpassed 1 billion rides in 2015, six times more than Uber China