Car-hailing app Uber will sell its China business to domestic competitor Didi Chuxing, the Chinese company confirmed in a statement on Monday.
"Didi will buy Uber China's brand, services, data and all assets and operate it in mainland China. Uber Global will have 5.89 per cent of Didi shares," said a statement on Didi's official WeChat social media account.
The 5.89 per cent of shares is equal to 17.7 per cent economic interest for Uber Global, while Chinese shareholders of Uber China will have a total of 2.3 per cent of economic interest, according to the statement.
After launching in 2014, Uber's market share in China had been dwarfed by Didi Chuxing, which boasts 300 million registered users and 15 million drivers.
Uber's CEO Travis Kalanick has not provided concrete figures but said in February that Uber is losing more than 1 billion dollars a year in China where it faces a "fierce competitor."
"Cheng Wei, the founder and chairman of Didi, will take part in Uber Global's board of directors. Travis Kalanick, the founder of Uber, will also join Didi's board," the statement said.
A blog post written by Kalanick and obtained before publication by Bloomberg News said: "As an entrepreneur, I've learned that being successful is about listening to your head as well as following your heart ... I have no doubt that Uber China and Didi Chuxing will be stronger together."
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