After a bruising two-year battle, ride-hailing firm Uber is selling its China operations to bigger local rival Didi Chuxing in a deal that will give Uber a one-fifth stake in Didi.
The merged entity is worth around $35 billion – combining Didi’s most recent $28 billion valuation and Uber China’s $7 billion worth – said a source familiar with the matter who did not want to be named before the deal was made public.
- Uber will continue to operate independently, the Didi posting said. “Cooperating with Uber will give the entire mobile travel industry a healthier order and a period of a higher level of development,” it said.
- Didi confirmed the agreement on its official microblog, but gave no valuation. In a posting on Uber’s website, CEO Travis Kalanick said San Francisco-based Uber Technologies would have a one-fifth stake in Didi, making it the Chinese firm’s biggest shareholder. Kalanick will join Didi’s board, with Didi Chuxing chief Cheng Wei joining the Uber board.
- Uber’s China business will retain its separate branding while US-based Uber Technologies will hold a stake of about 17.5% in the combined company.
- Under the deal, Didi will also invest $1 billion in Uber, which operates globally outside China, the source said, adding to a series of deals and joint ventures Didi has struck in recent years.