Didi Chuxing, the largest ride-hailing service in China, announced Monday that it will acquire Uber’s operations in the country.
Didi is buying Uber’s brand, business and data in the country.
“This merger paves the way for our team and Didi’s to partner on an enormous mission, and it frees up a substantial resources for bold initiatives focused on the future of cities — from self-driving technology to the future of food and logistics,”
Uber CEO Travis Kalanick said in a statement, officially announcing the deal.
The valuation of the combined Chinese entity after Didi Chuxing (worth $28 billion valuation) and Uber China (worth $7 billion) merger is pegged at $35 billion. Uber shareholders would receive a 20 percent stake in the new company.
“With the addition of the strong talents and experience of the Uber China team, Didi Chuxing will be even better positioned to serve the Chinese people.”
Liu, the daughter of Lenovo founder Liu Chuanzhi, joined the ride-sharing firm in February 2015, shortly before the company acquired its biggest homegrown rival, Kuaidi. She added:
“We look forward to working with our partners at home and abroad to create more value for drivers, passengers and communities.”
The companies have been fighting relentlessly for market share in mainland China for two years, spending tens of millions of dollars every month to attract riders and drivers.
This puts an end to a year-long standoff that has led to both Uber China and Didi losing money in an effort to secure a lasting victory. Uber alone has lost more than $2 billion in the fight.
At times, the battle has got nasty. One year ago Uber accused China’s biggest messaging app, WeChat, of deleting its accounts on the service. WeChat’s owner, Tencent, is a substantial investor in Didi. So too are Alibaba, China’s answer to Amazon, and Apple, which took a $1 billion stake in May.
Under the deal, Didi will also invest $1 billion in Uber, which operates globally outside China.