Uber Pulls out of China

San Diego X

Well-Known Member
Uber leaves China by selling UberChina to Didi, $35 billion deal. Uber is now the biggest share holder of Didi.

Uber now owns 17% of Didi. Didi invests $1B into Uber. Didi CEO gets a board seat on Uber. Didi owns a stake in Lyft! Technically, Uber owns now owns a stake in Lyft through this deal.

Other notable Didi investors: Apple, Alibaba, Baidu, Tencent and now Uber.

Uber has lost $2 billion in China in two years.

TK: "Sustainably serving China's cities, & the riders & drivers who live in them, is only possible with profitability."
 

DanB

Well-Known Member
It was interesting reading the news about this. Some media outlets say Didi and Uber "merged" while others say Uber "sold out" to Didi.

The last bit of the NY Times article shows that the Asian rideshare drivers do the exact same thing as other drivers by chasing bonuses and driving for whoever pays them the best. And if they haven't had a rate cut in the past, it's coming soon with this "merger". Welcome to pain train!

Although the tie-up is expected to reassure investors, Chinese analysts said it would probably lead to a decrease in commissions. That could hurt customers and drivers alike, the analysts said, making it harder for smaller players to compete because their larger rival would no longer be saddled with such an expense.

“For smaller companies like Yidao or Shenzhou, if they keep subsidizing users, it will only be temporary and will bring more financial burdens,” said Hong Bo, an independent technology analyst in China.

Li Bo, a 22-year-old driver from Henan, said the loyalty of drivers is determined by where they could get the best pay. That meant they would continue to follow the subsidies, he said.

“All we care is who gives us the best deal,” he said. “If Didi buys Uber, we just work for Didi. It doesn’t really matter.”


Here's a link to the NY Times article...

Uber to Sell to Rival Didi Chuxing and Create New Business in China
http://www.nytimes.com/2016/08/02/business/dealbook/china-uber-didi-chuxing.html
 

Santa

Well-Known Member
Why not just let Uber die instead of buying it??
Do these Chinese really think that they can get some of the profits from Uber's other markets??

Uber isn't going to give them shit. On the other hand Uber is now at least worth 35 billion, if not 65 billion.
 

Bill Feit

Well-Known Member
You can thank the $3.5 billion investment by the Saudis for this and things like fighting the settlement with drivers in California. The Saudis are fantastic business people and do not like loosing money...next step is to force company to go public
 
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