Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Android
    • Android
    • Apple
    • Mobile

    Uber China Being Acquired by China’s Didi Chuxing Ride-Sharing Service

    By
    Todd R. Weiss
    -
    August 1, 2016
    Share
    Facebook
    Twitter
    Linkedin
      Didi Chuxing and Uber

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      China’s Didi Chuxing ride-sharing service is acquiring Uber’s Chinese operations for a 20 percent stake in the Chinese company, as Uber gives up on trying to battle the company after losing more than $2 billion there in the last two years.

      The acquisition of the assets of Uber China was announced by Didi Chuxing on Aug. 1 as a “landmark transaction [that] signals a new stage in the development of China’s rideshare industry.” The deal includes Uber China’s branded business operations and its operational and customer data throughout mainland China.

      Uber will receive 5.89 percent of the combined company with preferred equity interest, which is equal to a 17.7 percent economic interest in Didi Chuxing, according to the deal. Another 2.3 percent economic interest will be received by Baidu and other Chinese shareholders under the deal, while Didi Chuxing will also obtain a minority equity interest in Uber.

      Cheng Wei, the founder and chairman of Didi Chuxing, will join the board of Uber while Travis Kalanick, the CEO and co-founder of Uber, will join the board of Didi Chuxing, the companies announced.

      Uber China will keep its independent branding and business operations following the deal to help “ensure stability and continuity of service for passengers and drivers,” the companies said. Didi Chuxing will meanwhile “integrate the managerial and technological experience and expertise of the two teams, to meet China’s ever richer transportation demands.”

      The China ride-sharing marketplace has been volatile in the last several years. In May, Apple unveiled its own $1 billion investment in DiDi Chuxing, just before Apple CEO Tim Cook headed to China for talks with leaders there. The move was interesting due to its timing, according to an earlier eWEEK story. Apple’s investment came just after government regulators in China without warning shut down Apple’s online iBooks Store and iTunes Movies service, which had opened six months before, leaving the company working with the Communist government to try to restart the services. The shuttering of the Apple services occurred despite permission that Apple previously received from the Chinese government when the services began there last year.

      “Didi Chuxing and Uber have learned a great deal from each other over the past two years in China’s burgeoning new economy,” Cheng Wei, founder and CEO of Didi Chuxing, said in a statement. “As a technology leader deeply rooted in China, Didi Chuxing is constantly pushing the frontier of innovation to redefine the future of human mobility. This agreement with Uber will set the mobile transportation industry on a healthier, more sustainable path of growth at a higher level.”

      With the deal in place, the company “commits all our energy to work with regulators, users and partners to meet the transportation, environmental and employment challenges of our cities,” Wei said.

      The Uber China acquisition will help Didi Chuxing better serve its more than 15 million drivers and 300 million registered users, Jean Liu, president of Didi Chuxing, said in a statement. “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. Didi Chuxing will also continue to expand its international strategy. We look forward to working with our partners at home and abroad to create more value for drivers, passengers and communities.”

      In an Aug. 1 post on the Uber Website, CEO Kalanick wrote that his company’s merger with Didi Chuxing comes three years after he traveled to China to look at the idea of launching Uber operations in the country.

      “It was an ambitious idea, given that we were still a relatively small start-up and no one there had ever heard of the company,” he wrote. “Most of the people we asked for advice thought we were naive, crazy—or both.”

      UberChina grew quickly and exceeded 150 million trips per month, but the operation still wasn’t profitable, he wrote.

      “However, as an entrepreneur, I’ve learned that being successful is about listening to your head as well as following your heart. Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there. Getting to profitability is the only way to build a sustainable business that can best serve Chinese riders, drivers and cities over the long term.”

      Kalanick said he believes that “Uber China and Didi Chuxing will be stronger together,” under the merger. “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 ride-sharing is increasingly becoming a credible alternative to car ownership.”

      Todd R. Weiss
      As a technology journalist covering enterprise IT for more than 15 years, I joined eWEEK.com in September 2014 as the site's senior writer covering all things mobile. I write about smartphones, tablets, laptops, assorted mobile gadgets and services,mobile carriers and much more. I formerly was a staff writer for Computerworld.com from 2000 to 2008 and previously wrote for daily newspapers in eastern Pennsylvania. I'm an avid traveler, motorcyclist, technology lover, cook, reader, tinkerer and mechanic. I drove a yellow taxicab in college and collect toy taxis and taxi business cards from around the world.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×